"Broadcom Inc. is helping OpenAI design and produce an artificial intelligence accelerator from 2026, getting into a lucrative sphere dominated by Nvidia Corp. The two firms plan to ship the first chips in that lineup starting next year, a person familiar with the matter said, asking to remain anonymous discussing a private deal. OpenAI will initially use the chip for its own internal purposes, the Financial Times reported earlier. The shares rose about 6.5% in early trading before New York markets opened on Friday."
"Chief Executive Officer Hock Tan made veiled references to that partnership on Thursday when he said Broadcom had secured a new client for its custom accelerator business. Tan said the company has secured more than $10 billion in orders from the new customer, which the person identified as OpenAI. Accelerators are essential to the development of AI at big tech firms from Meta Platforms Inc. to Microsoft Corp."
Broadcom is collaborating with OpenAI to design and produce an artificial intelligence accelerator beginning in 2026, with the first chips slated to ship next year. OpenAI will initially deploy the chip for internal use. Broadcom shares reacted positively, rising in early trading and boosting year-to-date gains. CEO Hock Tan said the company secured a new customer for its custom accelerator business and more than $10 billion in orders from that customer, identified as OpenAI. Broadcom benefits from a post-ChatGPT AI investment boom as companies build data centers, train models and expand AI services. Fiscal 2026 outlook and AI revenue growth are expected to accelerate.
Read at www.mercurynews.com
Unable to calculate read time
Collection
[
|
...
]