Catenaa, Monday, October 13, 2025- Broadcom Stock rose by over 10% on Monday after OpenAI partnered to produce its first in-house AI processors, as the ChatGPT maker races to secure the computing power needed to meet surging demand for its services.
The companies said that OpenAI would design the chips, which Broadcom will develop and deploy starting in the second half of 2026.
They will roll out 10 gigawatts’ worth of custom chips, whose power consumption is roughly equivalent to the needs of more than 8 million US households or five times the electricity produced by the Hoover Dam.
The agreement is the latest in a string of massive AI chip investments that have highlighted the technology industry’s surging appetite for computing power as it races to build systems that meet or surpass human intelligence.
Broadcom stock rose by over 10% on Monday, the stock is up by over 53% so far in the year.
OpenAI last week unveiled a 6-gigawatt AI chip supply deal with AMD that includes an option to buy a stake in the chipmaker, days after disclosing that Nvidia plans to invest up to $100 billion in the startup and provide it with data-center systems with at least 10 gigawatts of capacity.
“Partnering with Broadcom is a critical step in building the infrastructure needed to unlock AI’s potential,” OpenAI CEO Sam Altman said in a statement.
The tie-up with Broadcom, first reported by Reuters last year, places OpenAI among cloud-computing giants such as Alphabet-owned Google and Amazon that are developing custom chips to meet surging AI demand and reduce dependence on Nvidia’s costly processors that are limited in supply.
Broadcom and OpenAI said that the deployment of the new custom chips would be completed by the end of 2029, building on their existing co-development and supply agreements.
