Broadcom surges on OpenAI collaboration

(Sharecast News) - Broadcom surged on Monday after it and OpenAI announced a collaboration for 10 gigawatts of custom AI accelerators. No financial details were disclosed but OpenAI will design the accelerators and systems, which will be developed and deployed in partnership with Broadcom.

OpenAI said that by designing its own chips and systems, it can "embed what it's learned from developing frontier models and products directly into the hardware, unlocking new levels of capability and intelligence".

The racks, scaled entirely with Ethernet and other connectivity solutions from Broadcom, will meet surging global demand for AI, with deployments across OpenAI's facilities and partner data centres, the companies said.

OpenAI founder and chief executive Sam Altman said: "Partnering with Broadcom is a critical step in building the infrastructure needed to unlock AI's potential and deliver real benefits for people and businesses.

"Developing our own accelerators adds to the broader ecosystem of partners all building the capacity required to push the frontier of AI to provide benefits to all humanity."

Broadcom president and CEO Hock Tan said: "Broadcom's collaboration with OpenAI signifies a pivotal moment in the pursuit of artificial general intelligence.

"OpenAI has been in the forefront of the AI revolution since the ChatGPT moment, and we are thrilled to co-develop and deploy 10 gigawatts of next- generation accelerators and network systems to pave the way for the future of AI."

At 1540 BST, Broadcom shares were up 10% at $357.47.