Broadcom’s shares were up 10% on Monday. Its stock is up 80% this year, and it has a market cap exceeding $1.5 trillion|Coolcaesar|CC BY-SA 3.0
ChatGPT maker OpenAI and semiconductor manufacturer Broadcom announced a partnership to develop and deploy 10 gigawatts of custom AI chips and computing systems over the next four years.
The move shot up Broadcom’s shares 10% on Monday. Its stock is up 80% this year, and it has a market cap exceeding $1.5 trillion.
It brings OpenAI’s computing capacity, along with deals from Nvidia and AMD, to 26 gigawatts—enough to power New York City’s summer electricity demand twice.
The deal involves co-designing GPUs and related infrastructure. OpenAI CEO Sam Altman reportedly plans to expand computing capacity to 250 gigawatts by 2033, a project that could cost over $10 trillion at current rates.
The AI startup is valued at $500 billion with over 800 million weekly users. It is expecting $13 billion in 2025 revenue. Altman is exploring options to cover its future computing costs and infrastructure projects.