The new deal between OpenAI and Broadcom. Yes, you heard that right. OpenAI doesn’t stop anywhere — and after its partnerships with Nvidia , Oracle , and AMD , it’s now taking the next big step.
And when we say big, we mean… GIGANTIC. Because this collaboration involves the construction and development of 10 gigawatts of computing power. To put that in perspective, OpenAI currently operates with about 2 gigawatts. So now it’s going to quintuple its capacity. That means thousands of new racks, high-performance data centers, and entirely new levels of speed in AI training and model production.
And here comes the question: why should we care? Simply because the technology developed through this deal will change the game in artificial intelligence. And when the game changes… so do the markets. The truth is that when we talk about AI infrastructure at this scale, we’re also talking about multiple investment opportunities — but also risks that must be managed.
THE PARTNERSHIP
OpenAI will design custom AI chips, based on what it has learned from building its models (like ChatGPT, Sora, etc.), and Broadcom will manufacture and integrate them into special racks. These racks will use Ethernet-based networks, PCIe, and optical interconnects, all developed by Broadcom. In essence, they’re building a completely new AI infrastructure tailored specifically to OpenAI’s needs.
Put simply, they’re building their own tools to build their own models. And by doing so, they secure full control over cost, performance, and model scalability. Greg Brockman even emphasized that OpenAI is using its own AI models to optimize chip design — a process that leads to massive savings in space and resources.
The results will be:
(a) Lower cost per unit of compute,
(b) Faster and more capable AI models,
(c) Higher energy efficiency, and
(d) Full control of the supply chain and reduced dependency on third parties.
Sam Altman himself stated that this would lead to “much better performance, faster models, and cheaper services for users.” And OpenAI needs this — because demand is skyrocketing.
In the last three weeks alone, OpenAI has announced partnerships amounting to over 33 gigawatts of computing power — worth nearly $2 trillion in total. This is not some experimental venture; it’s a strategic move to solidify AI dominance. A technological race that feels more like a “space race” than a mere business expansion.
As expected, after the announcement, Broadcom’s stock soared 9% in a single day — and not without reason.
Remember, Broadcom has already gained over 50% this year, surpassing $1.6 trillion in market capitalization, making it one of the most important players in the AI hardware industry, even though it doesn’t get as much media attention as giants like Nvidia.
INVESTMENT OUTLOOK
This is yet another example of how major technology themes — like AI — can directly impact markets. And yes, some might say: “Should we buy Broadcom now?” or “Should we chase the next AI stock?”
Here’s where we need to pause.
No — that’s not our strategy. We don’t chase trends. We don’t invest just because something is hot. We observe, we analyze, but we don’t throw our investment plan out the window because we saw a +9% spike in a single day. Experience has taught us that such moves, while impressive, often lead to poor investment decisions.
P.S Something that worries me a lot is that OpenAi is doing a lot of investment and i don't know where they would find that money to go through. Keep an eye on that!!
Posted Using INLEO
it seems OpenAI is the hot cake. A private industry scaling over $500 billion and now a 10 gigawatt deal. It's all about what everyone is seeing