Tan said the orders — totalling more than US$10 billion — will ship next year. OpenAI, which is seeking to address shortages in computing capacity, will initially use the chip for internal purposes, one of the people said.
Broadcom Inc had its biggest one-day stock rally since April on news of the chipmaker teaming up with OpenAI to make artificial intelligence accelerators, a lucrative area dominated by Nvidia Corp.
As part of the agreement, Broadcom will help design and produce an accelerator chip that will start shipping in 2026. Chief Executive Officer Hock Tan first mentioned the arrangement Thursday without naming the customer. The client was later identified as OpenAI by people familiar with the matter, who asked to remain anonymous because the deal is private.
