OpenAI has entered a multiyear partnership with Broadcom Inc. to develop custom chips and networking equipment, enhancing its computing infrastructure. Under this agreement, OpenAI will design hardware with Broadcom, aiming to add 10 gigawatts (GW) of data center capacity by 2026 and complete the rollout by 2029. OpenAI’s CEO Sam Altman emphasizes that optimizing hardware design will unlock significant advancements in AI capabilities. This collaboration follows OpenAI’s previous arrangements with Nvidia and AMD to alleviate computational constraints, affirming its ambition for artificial general intelligence (AGI). Broadcom’s share price surged as a result, reflecting investor optimism in AI opportunities. While OpenAI does not involve investment in this deal, the goal is to enhance service offerings through increased computing power. The partnership exemplifies the growing intersection of AI and semiconductor technology, highlighting the long-term vision required to build robust AI infrastructures. The deal underlines both companies’ positions in the booming AI market.
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