Broadcom's $10 billion AI processor client is speculated to be OpenAI, with the potential order for multiple millions of AI processors.
OpenAI, the leading artificial intelligence (AI) research laboratory, is set to receive AI data center hardware worth over $10 billion from Broadcom, according to recent reports. The delivery of the hardware is expected to commence in 2026 and continue strong thereafter.
The deal, valued at a staggering $10 billion, positions OpenAI among the hyperscalers, joining the ranks of tech giants like Meta, Amazon Web Services (AWS), and Microsoft, in terms of infrastructure investment. The client, though yet undisclosed, has moved from evaluation or prototyping to full-scale commercial procurement.
Broadcom will deliver the AI hardware to its client in Q3 2026, marking a significant step forward in the AI industry. The hardware delivery timeline aligns with expectations for OpenAI's first deployment of custom AI processors, developed in collaboration with Broadcom, which is expected between late 2026 and early 2027.
The hardware package includes custom-designed AI accelerators and other gear from the company. The chip is reported to feature HBM memory, though the specific type (HBM3E or HBM4) remains unclear. The delivery will consist of custom AI accelerators, networking chips, and reference AI rack platforms.
OpenAI's shift towards in-house infrastructure with custom Broadcom silicon is aimed at cost control and inference optimization. The investment in Broadcom hardware could give OpenAI leverage when negotiating prices with other hardware providers such as AMD and Nvidia.
The custom AI processor, planned for this deal, is designed to utilize a systolic array architecture and is likely to be manufactured on TSMC's N3-series (3nm-class) process technology. The processor design is similar to other AI accelerators, featuring a grid of identical processing elements optimized for matrix and/or vector operations.
The investment is expected to result in 1-2 million XPUs, distributed across thousands of racks and tens of thousands of nodes. The hardware has passed customer validation and is now considered 'qualified' by Broadcom, signifying its readiness for large-scale deployment.
As of yet, there is no official confirmation that OpenAI signed the $10 billion deal with Broadcom. However, the alignment of the delivery timeline and the details of the hardware with OpenAI's plans suggest a strong possibility of the deal being finalised.
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