Broadcom Inc is helping OpenAI design and produce an artificial intelligence (AI) accelerator, getting into a lucrative sphere dominated by Nvidia Corp.
The two firms plan to ship the first chips in that lineup starting next year, a person familiar with the matter said.
OpenAI would initially use the chip for internal purposes, the Financial Times reported earlier.
Photo: AFP
Broadcom CEO Hock Tan (陳福陽) made veiled references to that partnership on Thursday when he said that Broadcom had secured a new client for its custom accelerator business.
Tan said the company has secured more than US$10 billion in orders from the new customer, which the person identified as OpenAI.
“Last quarter, one of these prospects released production orders to Broadcom,” Tan said, without naming the customer.
Tan on Thursday told investors that the chipmaker’s outlook would improve “significantly” next year, helping allay concerns about slowing growth.
He previously said that AI revenue for next year would show growth similar to this year — a rate of 50 percent to 60 percent.
Now, with a new customer that he said has “immediate and pretty substantial demand,” the rate would accelerate in a way that would be “fairly material,” Tan said.
“We now expect the outlook for fiscal 2026 AI revenue to improve significantly from what we had indicated last quarter,” he said.
Broadcom’s quarterly results initially drew a tepid reaction from investors, a sign they were anticipating a bigger payoff from the AI boom. After fluctuating in the wake of the report, the stock gained more than 3 percent during the conference call.
Sales would be about US$17.4 billion in the fiscal fourth quarter, which runs through next month, the company said in an earlier statement.
Analysts projected US$17.05 billion on average, although some estimates topped US$18 billion, Bloomberg data showed.
Expectations were high heading into the earnings report. Broadcom shares have more than doubled since hitting a low in April, adding about US$730 billion to the company’s market value and making it the third-best performer in the NASDAQ 100 Index.
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