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

Broadcom has reportedly declined to produce OpenAI‘s custom AI chip unless Microsoft commits to purchasing 40% of the chips. This dependency makes the financial investment “financially unattractive” for Broadcom, according to an internal message from OpenAI manager Sachin Katti.
The cost for the first phase alone is estimated at around $18 billion, highlighting the significant stakes involved in this partnership.
This situation underscores the challenges and complexities surrounding AI chip development, particularly when major tech companies like Microsoft are required to invest substantial capital for smaller players such as OpenAI or Broadcom.

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