OpenAI has forged a strategic alliance with Broadcom to develop its first custom-designed artificial intelligence processor. This collaboration aims to address the growing demand for computational power in the field of AI. Following the announcement, Broadcom’s stock surged by over 12% in premarket trading. OpenAI will oversee chip design, while Broadcom will handle development and deployment starting in late 2026. The initiative aims to release custom chips with a collective computing power exceeding 10 gigawatts, roughly equivalent to the energy consumption of eight million US households. OpenAI CEO Sam Altman highlighted the collaboration as vital for realizing AI’s full potential. Although financial details haven’t been disclosed, OpenAI will likely require external financing to support this ambitious project.