Broadcom soars on the latest blockbuster AI chip deal with OpenAI (www.businessinsider.com)

Broadcom jumped as much as 9% Monday after announcing a strategic agreement with OpenAI to build 10 gigawatts of custom AI accelerators—an order that helped push Broadcom up about 50% year-to-date. Under the deal OpenAI will design the systems while Broadcom will develop and deploy them; financial terms were not disclosed. The pact is part of an aggressive run of compute deals by OpenAI (the story notes roughly $1 trillion in AI‑compute deals in 2025 alone) and follows a pattern where major hardware partnerships trigger sharp moves in chipmaker stocks. For the AI/ML community this signals continued vertical integration and massive scaling of specialized hardware: 10 GW implies enormous datacenter power and speaks to priorities around power-efficiency, density and custom accelerator architectures tuned for large models. Broadcom frames the work as delivering “open, scalable and power‑efficient AI clusters,” which could lower cost-per-token and improve performance for large models if the accelerators are tightly co‑designed with OpenAI’s software. The deal also intensifies competition with established accelerator suppliers (e.g., NVIDIA, AMD) and highlights how control over custom silicon and deployment can be a strategic lever for model operators seeking faster, cheaper, or more secure training and inference at extreme scale.