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How will OpenAI's AI chip impact Broadcom's stock price by 2025?
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OpenAI Collaborates with Broadcom and TSMC on AI Inference Chip, Adds AMD Chips Amid Surging Demand
Oct 29, 2024, 04:59 PM
OpenAI is collaborating with Broadcom and Taiwan Semiconductor Manufacturing Company (TSMC) to develop its first in-house AI inference chip designed to support its artificial intelligence systems, according to sources. The partnership aims to reduce OpenAI's dependency on third-party suppliers and cut costs associated with its AI operations. OpenAI has reserved TSMC's manufacturing capacity for 2026 as part of this initiative. In addition to the collaboration with Broadcom and TSMC, OpenAI is adding Advanced Micro Devices (AMD) chips alongside NVIDIA chips to meet its surging infrastructure demands. The company had previously explored building its own foundries but has scaled back these ambitious plans due to the significant costs and time required. This move signifies OpenAI's intention to address the challenges posed by booming global AI chip demand. Broadcom shares gained as much as 4% following reports of the collaboration.
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