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Broadcom has reportedly refused to fund the production of OpenAI‘s custom AI chip unless Microsoft commits to purchasing 40 percent of these chips. This dependency is described as “financially unattractive” by OpenAI manager Sachin Katti, highlighting a significant hurdle in their project’s progress.
- Broadcom’s decision makes the financial viability and scalability of this initiative highly contingent on Microsoft’s willingness to invest heavily in the technology.
- With an initial phase estimated at $18 billion, the need for such a large stake from Microsoft underscores the critical nature of this partnership for OpenAI’s chip development.
- This news highlights the complex interplay between major tech players and the challenges they face in developing cutting-edge AI technologies.
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Originally published at the-decoder.com. Curated by AI Maestro.
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