Mentioned:
AVGO -7.92% NVDA -6.20% AMD -10.80%

OpenAI is one of the most disruptive artificial intelligence companies in the entire world. And they want to design their own chips next.

What’s happening:

  • OpenAI and Broadcom (NASDAQ: AVGO) have formed a new partnership to collaborate on the development of new artificial intelligence chips that will be purpose built for OpenAI

Why it matters:‍

  • This is the first ever deal OpenAI has done that is solely focused on developing their custom built chips for training their artificial intelligence models

Going deeper:‍

  • Broadcom has publicly stated they will manufacture, develop and help deploy custom chips for OpenAI and is aiming to deploy 10 gigawatts of total computing capacity as part of the new partnership
  • OpenAI has been cutting a flurry of massive new deals focused on expanding their access to high performance computing and GPUs lately, including Nvidia (NASDAQ: NVDA) committing $100B USD in staggered investment into OpenAI as they deploy new data centres as well as a deal with AMD (NASDAQ: AMD) in which OpenAI will purchase billions of dollars of GPUs from AMD annually

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