**Broadcom reportedly won’t build OpenAI‘s custom chip unless Microsoft buys 40 percent of them**
The collaboration between OpenAI and Broadcom for a custom AI chip has hit a roadblock. Broadcom is refusing to fund production without Microsoft committing to purchasing at least 40% of the chips, which would cost around $18 billion for the initial phase. This dependency has been deemed financially unattractive by OpenAI manager Sachin Katti in an internal message.
**Takeaways:**
– **Funding Dependency:** The project faces a significant hurdle due to Microsoft’s purchase requirement.
– **Financial Scale:** The deal requires substantial investment, with $18 billion estimated for the initial phase alone.
– **Uncertainty:** Without Microsoft’s commitment, Broadcom is unlikely to proceed with production.
Originally published at the-decoder.com. Curated by AI Maestro.
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