OpenAI plans to produce its own AI chips in collaboration with Broadcom (AVGO), aiming for deployment in 2024. Initially reported by the Financial Times, this strategic move will enhance OpenAI’s internal operations without selling chips externally. The transition aims to reduce reliance on Nvidia (NVDA) and cut costs, aligning with practices of major tech companies like Alphabet (GOOGL) and Amazon (AMZN), which have also developed custom chips for AI workloads. Broadcom CEO Hock Tan recently hinted at a new major client, believed to be OpenAI, which could significantly boost AI revenue growth by FY26. This initiative underscores the escalating demand for computing power to train large language models (LLMs). For investors, analyzing stocks in the AI sector is crucial; current top contenders like Microsoft (MSFT), Meta, and Nvidia have received strong buy ratings. To maximize investment strategies, consider advanced tools like TipRanks Premium for expert insights.
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