OpenAI Partners with Broadcom in Strategic Deal — Broadcom Shares Surge 10% Pre-Market

TradingKey - On October 13 (U.S. Eastern Time), Broadcom (AVGO) surged 10% in pre-market trading after announcing a strategic technology partnership with OpenAI.

The companies revealed plans to jointly develop a custom AI accelerator chip designed by OpenAI, with rollout expected in 2026. The collaboration will integrate Broadcom’s accelerators and Ethernet solutions into unified systems designed for both vertical and horizontal scaling in data centers.

Under the agreement, OpenAI will lead the architectural design of the accelerators and systems, embedding its cutting-edge expertise from large model development directly into the hardware to enhance computational efficiency and intelligence. Broadcom will be responsible for deploying server racks equipped with these AI accelerators and networking systems. The project is set to begin in the second half of 2026, with completion targeted by the end of 2029.

The partnership aims to meet surging global demand for AI computing power. The resulting infrastructure will be deployed in OpenAI’s own facilities as well as data centers operated by its partners.

This move marks a critical step for OpenAI in building an end-to-end AI infrastructure stack, reducing reliance on third-party chip designs. At the same time, it reinforces Broadcom’s pivotal role in the AI semiconductor supply chain, positioning the company at the heart of next-generation AI hardware innovation.