Shares of Broadcom Inc. (NASDAQ:AVGO) jumped 12% Monday morning after the company unveiled a landmark strategic collaboration with OpenAI to co-develop and deploy 10 gigawatts of custom AI accelerators.
Under the multi-year agreement, OpenAI will design the chips, while Broadcom will oversee development and deployment. Both companies have signed a term sheet to deploy racks integrating the new accelerators with Broadcom’s networking solutions. The rollout is scheduled to begin in the second half of 2026 and be completed by the end of 2029.
“Broadcom’s collaboration with OpenAI signifies a pivotal moment in the pursuit of artificial general intelligence,” said Hock Tan, President and CEO of Broadcom. “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.”
The deal strengthens Broadcom’s leadership in AI infrastructure, underscoring the growing role of custom accelerators and Ethernet technology in powering advanced AI data centers. The planned racks will feature Broadcom’s full suite of Ethernet, PCIe, and optical connectivity solutions.
Sam Altman, co-founder and CEO of OpenAI, described the partnership as “a critical step in building the infrastructure needed to unlock AI’s potential.” By designing its own accelerators, OpenAI aims to translate its model development experience directly into optimized hardware.
OpenAI, which has surpassed 800 million weekly active users, plans to deploy the systems across its facilities and partner data centers to meet surging global demand for AI computing power. This collaboration marks one of the most ambitious AI infrastructure initiatives announced to date.
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