OpenAI is making its own AI chips with Broadcom's help

OpenAI, the artificial intelligence company, has signed a deal with Broadcom to design and deploy custom AI accelerators and systems. The two companies will work together to create the chips and systems, which will be used in OpenAI's infrastructure and its partners' data centers. The deal is worth "multiple billions of dollars" and will result in the deployment of 10 gigawatts of chips by the end of 2029. This partnership is part of OpenAI's broader strategy to build out 250 gigawatts of compute power over the next eight years, a significant increase from the 2 gigawatts it expects to have by the end of this year. The company has also recently struck deals with NVIDIA and AMD to provide it with additional AI infrastructure. While OpenAI's ambition to build such a vast computing infrastructure is commendable, the estimated cost of $10 trillion presents a significant challenge. The company will need to develop new financing tools to make this a reality, as even its current deals have already committed it to hundreds of billions of dollars in expenses.