In Brief
Posted:
OpenAI has landed a new hardware partner.
The AI research lab announced Monday it formed a partnership with semiconductor company Broadcom for 10 gigawatts’ worth of custom AI accelerator hardware. These AI accelerator racks will be deployed to OpenAI data centers and partner data centers starting in 2026 and running through 2029.
“By designing its own chips and systems, OpenAI can embed what it’s learned from developing frontier models and products directly into the hardware, unlocking new levels of capability and intelligence,” the company said in a press release.
While terms of the deal were not disclosed, the Financial Times estimated it could cost OpenAI an estimated $350 billion to $500 billion.
This is just the latest infrastructure deal for OpenAI in recent weeks.
Last week, OpenAI announced it was purchasing an additional six gigawatts of chips from AMD in a deal worth tens of billions of dollars. In September, Nvidia announced it was investing $100 billion into OpenAI alongside a letter of intent for OpenAI to tap 10 gigawatts’ worth of Nvidia hardware.
OpenAI also allegedly signed a historic $300 billion cloud infrastructure deal with Oracle in September. Neither company has confirmed the deal.
Techcrunch event
San Francisco | October 27-29, 2025
TechCrunch reached out to OpenAI for more information.
Topics
Subscribe for the industry’s biggest tech news
Latest in AI
Latest TechCrunch
- Waymo plans to launch a robotaxi service in London in 2026Waymo already has ties to the UK, which began after the autonomous vehicle technology company acquired Latent Logic in 2019.
- OpenAI has five years to turn $13 billion into $1 trillionSome of America's most valuable companies are now leaning on OpenAI to fulfill major contracts, notes the FT.
- Coinbase boosts investment in India’s CoinDCX, valuing exchange at $2.45BCoinbase's latest investment lifts CoinDCX's valuation from $2.15 billion to $2.45 billion.
- EVs take a backseat in Stellantis’ $13B US investment planFive new vehicles and a four-cylinder engine will be developed and produced through 2029 as part of investment into factories in Illinois, Ohio, Michigan, and Indiana.
- Sam Altman says ChatGPT will soon allow erotica for adult usersOpenAI says it will soon roll back some of ChatGPT's safeguards, and even allow the chatbot to engage in erotica for adult users.
- At Starbase, SpaceX is taking firefighting into its own handsSpaceX's company town has formed a volunteer fire department, extending control over both the emergency response and permitting process as the company looks to expand Starbase.