OpenAI Partners with Broadcom to Build Custom AI Chips, Targets 10GW Infrastructure by 2029
In a major move to expand its technological independence, OpenAI has partnered with semiconductor giant Broadcom to co-develop advanced artificial intelligence (AI) chips and computing systems. The collaboration, announced on Monday, marks a pivotal step in OpenAI’s mission to strengthen its AI infrastructure and reduce reliance on third-party hardware providers. The companies plan to design and deploy computer racks equipped with Broadcom’s high-speed networking systems to boost AI performance and scalability.
Under the agreement, OpenAI will focus on designing custom accelerators and systems optimized for its AI models, while Broadcom will handle the development and deployment process. The project aims to achieve an ambitious target of 10 gigawatts of computing capacity by 2029, a scale large enough to support OpenAI’s expanding portfolio of AI tools and applications. Work on the initiative is set to begin in 2026, signaling a long-term investment in next-generation computing power.
Sam Altman, co-founder and CEO of OpenAI, described the partnership as a “critical milestone” in advancing the future of AI infrastructure. “Partnering with Broadcom is a key step toward building the systems that will unlock AI’s full potential and deliver real benefits for people and businesses,” he said. Altman added that creating in-house accelerators allows OpenAI to embed learnings from its frontier models like GPT directly into the hardware, improving speed, efficiency, and accessibility.
Hock Tan, President and CEO of Broadcom, echoed this sentiment, calling the collaboration “a pivotal moment in the pursuit of artificial general intelligence.” According to Tan, the partnership reflects how semiconductor innovation and AI research can merge to break new ground in computing performance. Broadcom’s focus will be on deploying energy-efficient Ethernet-based networking systems capable of managing massive AI workloads at scale.
This partnership follows a series of high-profile moves by OpenAI to cement its leadership in the AI industry. Earlier this year, the company raised $40 billion in a record-breaking funding round led by SoftBank, bringing its valuation to about $300 billion. OpenAI has also made major acquisitions, including io Products, Windsurf (formerly Codeium), and Statsig, while securing a $300 billion cloud computing deal with Oracle. Together, these developments position OpenAI at the forefront of the race to build faster, smarter, and more sustainable AI systems for the future.
source: Nairametrics