OpenAI and Broadcom Announce Multi-Year Partnership to Develop Next-Generation AI Accelerator and Networking Systems

OpenAI and Broadcom partner to develop next-gen AI accelerators and network systems, aiming for deployment by 2029.

Quiver AI Summary

OpenAI and Broadcom have announced a multi-year partnership to co-develop and deploy 10 gigawatts of custom AI accelerators and networking solutions aimed at enhancing AI infrastructure. OpenAI will design the accelerators, integrating insights from its AI advancements, while Broadcom will provide Ethernet and networking technologies. The deployment of AI accelerator racks is scheduled to begin in the second half of 2026, with completion expected by the end of 2029, to meet the increasing global demand for AI capabilities. Both companies emphasize the significance of this collaboration in advancing artificial general intelligence, ensuring that its benefits extend to all of humanity.

Potential Positives

OpenAI and Broadcom have established a multi-year partnership to co-develop 10 gigawatts of custom AI accelerators and networking systems, positioning both companies at the forefront of AI infrastructure innovation.
The collaboration allows OpenAI to design its own accelerators, integrating insights gained from its advanced AI models directly into the hardware, which can lead to enhanced performance and capabilities in AI applications.
This partnership aims to meet the growing global demand for AI by deploying systems across OpenAI's facilities and partner data centers, potentially expanding OpenAI's reach and influence in the AI market.
The collaboration reinforces Broadcom's leadership in AI infrastructure, emphasizing the importance of custom accelerators and Ethernet technology, thus enhancing its market position and attractiveness to future clients in AI sectors.

Potential Negatives

The announcement highlights a significant dependence on external partnerships, which could pose risks if the collaboration does not yield expected results or faces unforeseen challenges.
Broadcom has outlined several risks associated with their forward-looking statements, indicating that actual results may differ materially, which could lead to investor concerns about future performance.
The projected timeline for deployment extends into 2029, raising questions about the company's current capability to meet immediate market demand for AI solutions.

FAQ

What is the partnership between OpenAI and Broadcom about?

The partnership focuses on co-developing AI accelerators and network systems for next-generation AI clusters, targeting deployment by 2026.

When will the AI accelerators be deployed?

Deployment of the AI accelerator racks is targeted to start in the second half of 2026 and complete by the end of 2029.

How much power will the custom AI accelerators provide?

OpenAI and Broadcom's collaboration aims to deliver 10 gigawatts of custom AI accelerators for enhanced AI capabilities.

What benefits will this collaboration bring to AI?

This collaboration aims to unlock new levels of AI capability, benefiting businesses and society by advancing artificial general intelligence.

Who are the key executives involved in the partnership?

Key executives include Sam Altman from OpenAI and Hock Tan from Broadcom, both emphasizing the strategic importance of this collaboration.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$AVGO Congressional Stock Trading

Members of Congress have traded $AVGO stock 22 times in the past 6 months. Of those trades, 14 have been purchases and 8 have been sales.

Here’s a breakdown of recent trading of $AVGO stock by members of Congress over the last 6 months:

REPRESENTATIVE VAL T. HOYLE has traded it 2 times. They made 1 purchase worth up to $15,000 on 06/06 and 1 sale worth up to $50,000 on 09/23.
REPRESENTATIVE CLEO FIELDS has traded it 6 times. They made 6 purchases worth up to $315,000 on 09/17, 08/15, 08/13, 07/29, 07/18 and 0 sales.
SENATOR SHELLEY MOORE CAPITO sold up to $15,000 on 07/18.
REPRESENTATIVE RITCHIE TORRES sold up to $15,000 on 07/11.
REPRESENTATIVE JAMES COMER sold up to $15,000 on 07/03.
REPRESENTATIVE JOSH GOTTHEIMER purchased up to $15,000 on 06/25.
REPRESENTATIVE NANCY PELOSI purchased up to $5,000,000 on 06/20.
REPRESENTATIVE LISA C. MCCLAIN has traded it 3 times. They made 2 purchases worth up to $30,000 on 06/17, 06/11 and 1 sale worth up to $15,000 on 06/10.
SENATOR JOHN BOOZMAN purchased up to $15,000 on 06/11.
REPRESENTATIVE ROBERT BRESNAHAN purchased up to $15,000 on 06/11.
REPRESENTATIVE DAVID TAYLOR purchased up to $15,000 on 05/14.
REPRESENTATIVE JEFFERSON SHREVE has traded it 2 times. They made 0 purchases and 2 sales worth up to $300,000 on 05/12, 04/17.
REPRESENTATIVE BRUCE WESTERMAN sold up to $15,000 on 04/21.

To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.

$AVGO Insider Trading Activity

$AVGO insiders have traded $AVGO stock on the open market 96 times in the past 6 months. Of those trades, 3 have been purchases and 93 have been sales.

Here’s a breakdown of recent trading of $AVGO stock by insiders over the last 6 months:

HENRY SAMUELI has made 0 purchases and 13 sales selling 842,695 shares for an estimated $250,357,760.
HOCK E TAN (President and CEO) has made 0 purchases and 6 sales selling 445,912 shares for an estimated $134,838,216.
MARK DAVID BRAZEAL (Chief Legal & Corp Affairs Ofc) has made 0 purchases and 26 sales selling 127,204 shares for an estimated $35,361,686.
KIRSTEN M. SPEARS (CFO & Chief Accounting Officer) has made 0 purchases and 21 sales selling 104,979 shares for an estimated $28,017,294.
CHARLIE B KAWWAS (President, Semi Solutions Grp) has made 0 purchases and 20 sales selling 16,397 shares for an estimated $4,785,269.
JUSTINE PAGE has made 0 purchases and 6 sales selling 4,800 shares for an estimated $1,285,840.
HARRY L. YOU has made 3 purchases buying 3,550 shares for an estimated $1,227,870 and 0 sales.
GAYLA J DELLY sold 3,000 shares for an estimated $795,390

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$AVGO Hedge Fund Activity

We have seen 2,180 institutional investors add shares of $AVGO stock to their portfolio, and 1,624 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

FMR LLC added 15,242,268 shares (+15.0%) to their portfolio in Q2 2025, for an estimated $4,201,531,174
PRICE T ROWE ASSOCIATES INC /MD/ added 12,640,424 shares (+19.3%) to their portfolio in Q2 2025, for an estimated $3,484,332,875
CAPITAL INTERNATIONAL INVESTORS removed 12,484,722 shares (-7.6%) from their portfolio in Q2 2025, for an estimated $3,441,413,619
JANE STREET GROUP, LLC removed 7,333,469 shares (-97.8%) from their portfolio in Q2 2025, for an estimated $2,021,470,729
CAPITAL WORLD INVESTORS removed 6,799,578 shares (-4.4%) from their portfolio in Q2 2025, for an estimated $1,874,303,675
VANGUARD GROUP INC added 6,222,802 shares (+1.3%) to their portfolio in Q2 2025, for an estimated $1,715,315,371
SG AMERICAS SECURITIES, LLC removed 6,152,945 shares (-43.0%) from their portfolio in Q2 2025, for an estimated $1,696,059,289

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$AVGO Analyst Ratings

Wall Street analysts have issued reports on $AVGO in the last several months. We have seen 20 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Keybanc issued a "Overweight" rating on 09/30/2025
Macquarie issued a "Outperform" rating on 09/15/2025
Mizuho issued a "Outperform" rating on 09/12/2025
Argus Research issued a "Buy" rating on 09/08/2025
Citigroup issued a "Buy" rating on 09/05/2025
Evercore ISI Group issued a "Outperform" rating on 09/05/2025
Barclays issued a "Overweight" rating on 09/05/2025

To track analyst ratings and price targets for $AVGO, check out Quiver Quantitative's $AVGO forecast page.

$AVGO Price Targets

Multiple analysts have issued price targets for $AVGO recently. We have seen 25 analysts offer price targets for $AVGO in the last 6 months, with a median target of $370.0.

Here are some recent targets:

John Vinh from Keybanc set a target price of $420.0 on 09/30/2025
Arthur Lai from Macquarie set a target price of $420.0 on 09/15/2025
Vijay Rakesh from Mizuho set a target price of $410.0 on 09/12/2025
Jim Kelleher from Argus Research set a target price of $375.0 on 09/08/2025
Christopher Danely from Citigroup set a target price of $350.0 on 09/05/2025
Joseph Moore from Morgan Stanley set a target price of $382.0 on 09/05/2025
Ross Seymore from Deutsche Bank set a target price of $350.0 on 09/05/2025

Full Release

Multi-year partnership enables OpenAI and Broadcom to deliver accelerator and network systems for next-generation AI clusters

News:

OpenAI and Broadcom will co-develop systems that include accelerators and Ethernet solutions from Broadcom for scale-up and scale-out
Broadcom to deploy racks of AI accelerator and network systems targeted to start in the second half of 2026, to complete by end of 2029

SAN FRANCISCO and PALO ALTO, Calif., Oct. 13, 2025 (GLOBE NEWSWIRE) -- OpenAI and Broadcom Inc. (NASDAQ: AVGO) today announced a collaboration for 10 gigawatts of custom AI accelerators. OpenAI will design the accelerators and systems, which will be developed and deployed in partnership with Broadcom. By designing its own chips and systems, OpenAI can embed what it’s learned from developing frontier models and products directly into the hardware, unlocking new levels of capability and intelligence. The racks, scaled entirely with Ethernet and other connectivity solutions from Broadcom, will meet surging global demand for AI, with deployments across OpenAI’s facilities and partner data centers.

OpenAI and Broadcom have long-standing agreements on the co-development and supply of the AI accelerators. The two companies have signed a term sheet to deploy racks incorporating the AI accelerators and Broadcom networking solutions.

“Partnering with Broadcom is a critical step in building the infrastructure needed to unlock AI’s potential and deliver real benefits for people and businesses,” said Sam Altman, co-founder and CEO of OpenAI. “Developing our own accelerators adds to the broader ecosystem of partners all building the capacity required to push the frontier of AI to provide benefits to all humanity.”

“Broadcom’s collaboration with OpenAI signifies a pivotal moment in the pursuit of artificial general intelligence,” said Hock Tan, President and CEO of Broadcom Inc. “OpenAI has been in the forefront of the AI revolution since the ChatGPT moment, and we are thrilled to co-develop and deploy 10 gigawatts of next- generation accelerators and network systems to pave the way for the future of AI.”

“Our collaboration with Broadcom will power breakthroughs in AI and bring the technology’s full potential closer to reality,” said OpenAI co-founder and President, Greg Brockman. “By building our own chip, we can embed what we’ve learned from creating frontier models and products directly into the hardware, unlocking new levels of capability and intelligence.”

“Our partnership with OpenAI continues to set new industry benchmarks for the design and deployment of open, scalable and power-efficient AI clusters,” said Charlie Kawwas, Ph.D., President of the Semiconductor Solutions Group for Broadcom Inc. “Custom accelerators combine remarkably well with standards-based Ethernet scale-up and scale-out networking solutions to provide cost and performance optimized next-generation AI infrastructure. The racks include Broadcom’s end-to-end portfolio of Ethernet, PCIe and optical connectivity solutions, reaffirming our AI infrastructure portfolio leadership.”

For Broadcom, this collaboration reinforces the importance of custom accelerators and the choice of Ethernet as the technology for scale-up and scale-out networking in AI data centers.

OpenAI has grown to over 800 million weekly active users and strong adoption across global enterprises, small businesses, and developers. This collaboration will help OpenAI advance its mission to ensure that artificial general intelligence benefits all of humanity.

For more information on the news, please visit openai.com/podcast .

About Broadcom

Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops, and supplies a broad range of semiconductor, enterprise software and security solutions. Broadcom's category-leading product portfolio serves critical markets including cloud, data center, networking, broadband, wireless, storage, industrial, and enterprise software. Our solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, go to www.broadcom.com .

About OpenAI

OpenAI is an AI research and deployment company. Our mission is to ensure that artificial general intelligence benefits all of humanity.

Press Contact
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Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements (including within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements regarding Broadcom’s collaboration with OpenAI for 10 gigawatts of custom AI accelerators, the co-development of systems by Broadcom and OpenAI that include accelerators and ethernet solutions from Broadcom, the deployment by Broadcom of racks of AI accelerator and network systems, and the timing, benefit, and impact of the deployment of the racks. These forward-looking statements are based on current expectations and beliefs of Broadcom’s management, current information available to Broadcom’s management, and current market trends and market conditions, and involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Accordingly, undue reliance should not be placed on such statements.

Particular uncertainties that could materially affect future results include risks associated with: global political and economic conditions and uncertainty; government regulations, trade restrictions and trade tensions; fluctuations in the timing and volume of significant customer demand; ability to make successful investments in research and development and successfully expand Broadcom’s business strategy or adopt Broadcom’s new business models; ability to continue winning business and the timing of such wins; dependence on senior management and the ability to attract and retain qualified personnel; ability to protect against cybersecurity threats and a breach of security systems; dependence on contract manufacturing and outsourced supply chain; dependency on a limited number of suppliers; ability to accurately estimate customers’ demand and adjust the manufacturing and supply chain accordingly; ability to improve manufacturing capacity and quality; involvement in legal proceedings; quarterly and annual fluctuations in operating results; Broadcom’s competitive performance; ability to maintain or improve gross margin; ability to protect Broadcom’s intellectual property and the unpredictability of any associated litigation expenses; significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; and other events and trends on a national, regional, industry-specific and global scale, including those of a political, economic, business, competitive and regulatory nature.

Broadcom’s filings with the Securities and Exchange Commission (SEC) are available without charge at the SEC’s website at https://www.sec.gov and include some important risk factors that may affect future results. Actual results may vary from the forward-looking statements provided. Broadcom undertakes no intent or obligation to publicly update or revise the forward-looking statements made in this announcement, except as required by law.