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

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By AI Maestro May 9, 2026 1 min read
Broadcom reportedly won’t build OpenAI’s custom chip unless Microsoft buys 40 percent of them
  • Broadcom has reportedly refused to fund the production of OpenAI‘s custom AI chip unless Microsoft commits to purchasing 40 percent of these chips. The first phase alone is estimated to cost around $18 billion.
  • OpenAI manager Sachin Katti described this dependency as “financially unattractive” in an internal message, indicating that the deal has stalled.
  • This development highlights the complex financial and strategic negotiations behind AI chip production and underscores the challenges of scaling up AI technology on a global scale.

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

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