OpenAI Secures $10B Broadcom AI Chip Deal to Reduce Nvidia Reliance

OpenAI has entered a $10 billion partnership with Broadcom to develop custom AI chips, aiming to reduce its reliance on Nvidia, the current dominant supplier of AI processors. These AI accelerators, expected to launch in 2026, will be used to boost OpenAI's training capacity and mitigate GPU shortages that have previously delayed product releases like ChatGPT-4.5. Broadcom, which has significantly expanded its presence in AI infrastructure, sees this deal as transformative for its 2026 outlook and a major step into the AI chip market. The partnership reflects a broader industry trend where major tech companies such as Google, Amazon, Meta, and Microsoft are also creating their own custom chips to meet surging demand and diversify supply chains. OpenAI's move signals a potential challenge to Nvidia's dominance and could spur innovation in AI hardware. Broadcom's recent financial reports highlight substantial growth in AI semiconductor revenue, indicating strong momentum driven by the AI boom.