OpenAI and Broadcom partner on AI hardware

OpenAI has announced a significant partnership with Broadcom to acquire 10 gigawatts of custom AI accelerator hardware. These AI accelerator racks are planned for deployment in OpenAI’s and partner data centers from 2026 through 2029. By designing its own chips and systems, OpenAI aims to integrate insights from its advanced AI model development directly into the hardware, enhancing performance and intelligence capabilities. The financial terms of the deal were not disclosed, though the Financial Times estimated the value. This hardware agreement follows a series of major recent deals by OpenAI, including a multi-billion dollar arrangement with Nvidia for 10 gigawatts of hardware and a reportedly historic agreement with Oracle, which remains unconfirmed. These partnerships underscore OpenAI’s strategic focus on securing substantial computing resources to support its AI research and product development efforts over the coming years.