"Analysis OpenAI is allegedly developing a custom AI accelerator with the help of Broadcom in an apparent bid to curb its reliance on Nvidia and drive down the cost of its GPT family of models. Citing, you guessed it, unnamed sources familiar with the matter, the Financial Times reports that Broadcom's $10 billion mystery customer teased by CEO Hock Tan on Thursday's earnings call was none other than Sam Altman's AI hype factory OpenAI."
""Last quarter, one of these prospects released production orders to Broadcom, and we have accordingly characterized them as a qualified customer for XPUs and, in fact, have secured over $10 billion of orders of AI racks based on our XPUs," he said. "And reflecting this, we now expect the outlook for our fiscal 2026 AI revenue to improve significantly from what we had indicated last quarter.""
OpenAI is reportedly building a custom AI accelerator with Broadcom to lessen dependence on Nvidia and reduce GPT model costs. Broadcom indicated one prospect released production orders and has been classified as a qualified XPU customer, securing over $10 billion of AI rack orders. The new chip is expected to debut next year and will be used primarily internally rather than sold to external customers. The exact role of the chip for training versus inference remains unclear. Broadcom's intellectual property underpins much custom cloud silicon, offering clues about the potential design and integration.
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