In a bid to boost computing power amid rising demand, OpenAI has joined hands with Broadcom to develop its own AI chips — marking its first move into in-house processor production.

Shares of Broadcom rose more than 10%.

The companies said on Monday that OpenAI would design the chips, which Broadcom will develop and deploy starting in the second half of 2026. They will roll out 10 gigawatts worth of custom chips, whose power consumption is roughly equivalent to the needs of more than 8 million US households or five times the electricity produced by the Hoover Dam.

Most analysts do not expect the deal, the latest effort by a tech company to develop custom AI chips, to challenge Nvidia’s grip on the AI accelerator market, given the significant challenge of designing, scaling and manufa

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