OpenAI has entered into a significant partnership with Broadcom to develop its first custom-designed AI processor. This collaboration aims to address the growing demand for computational power in artificial intelligence (AI) and ensure sufficient supply for future innovations. Following this announcement, Broadcom’s stock experienced a surge of over 12%, highlighting market excitement about the project. OpenAI will handle the chip design, while Broadcom will take the lead on developing and deploying these custom chips starting in late 2026. The plan encompasses launching chips with a total computational power equivalent to the electricity consumption of over eight million US households. OpenAI CEO Sam Altman highlighted that this collaboration is key to building the necessary infrastructure for AI’s potential realization.