Broadcom and OpenAI in Discussion for AI Chip Development

Published On Fri Jul 19 2024

ChatGPT maker OpenAI in talks with Broadcom about developing AI chip

BENGALURU - ChatGPT maker OpenAI is in discussion with chip designers, including Broadcom, about developing a new artificial intelligence (AI) chip, The Information reported on July 18, citing sources familiar with the matter.

OpenAI is exploring the idea of making AI chips on its own to overcome the shortage of expensive graphics processing units that it relies on to develop AI models such as ChatGPT, GPT-4, and Dall-E3.

Broadcom: Raising Valuation Estimate as AI Becomes a Greater ...

The Microsoft-backed company is hiring former Google employees who produced the online search giant’s own AI chip, the tensor processing unit, and has decided to develop an AI server chip, the report added, citing three sources who have been involved.

Increasing Access to AI Infrastructure

“OpenAI is having ongoing conversations with industry and government stakeholders about increasing access to the infrastructure needed to ensure AI’s benefits are widely accessible,” a spokesperson for OpenAI said.

Broadcom rose 2.9 per cent to US$160.53 in New York trading after the report was published. The stock has gained 44 per cent in 2024, lifted by the company’s burgeoning AI equipment sales.

Broadcom sees $10 billion in AI chip sales in 2024, but shares dip ...

Though Nvidia has been the biggest beneficiary of AI spending, Broadcom is making fast headway in the market. It sells a range of components to data centre operators, which are rapidly expanding their facilities to accommodate AI services.

Broadcom’s AI sales will be more than US$11 billion in fiscal 2024, chief executive officer Hock Tan has said.

OpenAI CEO Sam Altman, meanwhile, has been working to raise billions of dollars from global investors for a chip venture, aiming to use the funds to set up a network of factories to manufacture semiconductors with chipmakers Intel, Taiwan Semiconductor Manufacturing Company, and Samsung Electronics as potential partners, Bloomberg reported earlier in 2024.

REUTERS, BLOOMBERG