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Broadcom, in partnership with OpenAI for developing a custom AI chip, faces a significant obstacle as they won’t proceed without Microsoft committing to purchasing 40% of the chips. This dependency has been deemed financially unattractive by OpenAI manager Sachin Katti.
- The project’s initial phase alone is estimated at around $18 billion, making this investment very substantial for both parties.
- This news underscores the complex nature of AI chip development and the strategic partnerships required to make such ventures financially viable.
- The situation highlights how capital alignment can be a crucial factor in large-scale technological collaborations like these.
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Originally published at the-decoder.com. Curated by AI Maestro.
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