Broadcom Closing on a Chip Collab With OpenAI
Broadcom Inc. shares gained almost 3% on Thursday after the Information reported that it has discussed making an artificial intelligence chip for OpenAI, potentially vaulting it further into Nvidia Corp.’s territory.
Tweet on Broadcom’s collab with OpenAI
@Broadcom Closing on a Chip Collab With @OpenAI , via Bloomberg#chip #clouds #automation https://t.co/zNErPNwxpV
— The_Journalbiz (@the_journalbiz) July 22, 2024
Bloomberg tweet news on Braodcom
OpenAI, maker of the ChatGPT chatbot, broached the idea with Broadcom as part of the startup’s wider discussions with chip designers, the news outlet said. The effort also has included OpenAI hiring former Google employees who worked on that company’s Tensor processor.
Broadcom rose 2.9% to $160.53 in New York trading after the report was published. The stock has gained 44% this year, lifted by the company’s burgeoning AI equipment sales.
Though Nvidia has been the biggest beneficiary of AI spending, Broadcom is making fast headway in the market. It sells a range of components to data center operators, which are rapidly expanding their facilities to accommodate AI services. Chief Executive Officer Hock Tan said that Broadcom’s AI sales will be more than $11 billion in fiscal 2024.
