OpenAI and Broadcom Join Forces to Power AI Revolution with 10GW Custom Chips

OpenAI has entered into a partnership with Broadcom to develop customized AI chips and systems with a staggering power capacity of 10 gigawatts. This impressive figure highlights the substantial energy consumption associated with the growing demand for artificial intelligence technologies, underscoring the challenges posed by their resource-intensive nature.

OpenAI has previously collaborated with other major chip manufacturers, including Nvidia and AMD, to meet the escalating demand from its expanding user base. Currently, ChatGPT boasts 800 million weekly active users, and the newly launched video generation application, Sora, has outpaced ChatGPT in growth, according to a company executive on the X platform, formerly known as Twitter.

OpenAI's CEO, Sam Altman, emphasized that partnering with Broadcom is a crucial step in building the necessary infrastructure to unlock AI's potential and deliver tangible value to individuals and businesses. The AI accelerators and networking systems resulting from this collaboration are slated to begin deployment in the latter half of 2026.

However, the substantial power usage from this project, equivalent to the electricity consumption of 8 million U.S. households, has sparked concerns regarding the environmental impact of AI technologies. According to a U.S. Department of Energy report, data centers are projected to account for 6.7% to 12% of the country's electricity usage by 2028, up from 4.4% in 2023.

Altman noted that a single query from ChatGPT consumes a similar amount of energy as a light bulb left on for a few minutes. Yet, more advanced models like Sora 2, capable of generating lifelike video clips, potentially use considerably more energy.

This collaboration with Broadcom signifies a strategic shift for OpenAI, as it seeks to gain greater control over the hardware infrastructure crucial for running AI services such as ChatGPT. By developing custom AI accelerators, OpenAI aims to enhance performance by integrating lessons learned from its cutting-edge model and product development directly into its hardware solutions.

Previously, Broadcom CEO Hock Tan mentioned on an earnings call about securing a significant $10 billion customer, widely speculated to be OpenAI. The recent announcement confirms this notable partnership, positioning both companies to make significant strides in the AI landscape.