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Broadcom demands Microsoft buy 40 percent of OpenAI's custom chip

Broadcom refuses to finance OpenAI's custom AI chip production unless Microsoft commits to purchasing 40 percent of output, with phase one costs estimated at 18 billion dollars.

May 9 · · primary fetch1 sourceupdated May 9 ·

OpenAI's custom AI chip project with Broadcom has hit a funding wall. Broadcom won't finance production unless Microsoft commits to buying 40 percent of the chips, and Microsoft hasn't agreed yet. OpenAI manager Sachin Katti called the dependency "financially unattractive" in an internal message.

The first phase alone costs around 18 billion dollars. The article Broadcom reportedly won't build OpenAI's custom chip unless Microsoft buys 40 percent of them appeared first on The Decoder.

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  1. the-decoder.comBroadcom reportedly won't build OpenAI's custom chip unless Microsoft buys 40 percent of themprimary