Broadcom reportedly won’t build OpenAI’s custom chip unless Microsoft buys 40 percent of them

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By AI Maestro May 10, 2026 1 min read
Broadcom reportedly won’t build OpenAI’s custom chip unless Microsoft buys 40 percent of them

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Broadcom has reportedly refused to produce OpenAI‘s custom AI chip without Microsoft committing to a 40 percent stake in the venture. This dependency is viewed as financially unattractive by OpenAI manager Sachin Katti, who noted that the initial phase alone would cost around $18 billion.

  • Broadcom’s refusal stems from an apparent funding barrier for chip production.
  • Microsoft has not yet agreed to this condition, leaving the project in a hold state.
  • The situation highlights potential challenges in scaling AI chip development through consortiums.

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Originally published at the-decoder.com. Curated by AI Maestro.

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