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OpenAI and Broadcom have announced a multi-billion dollar deal to develop 10 gigawatts of custom AI chips over the next four years. This collaboration will enable OpenAI to design its own GPUs, powering both its data centers and those of its partners. The chips are expected to roll out in the second half of next year.

AMD and OpenAI just closed a massive GPU deal. Could be worth $60 billion or more over the next five years. AMD stock rocketed up 35% since the announcement.

Despite skepticism about the feasibility of OpenAI's deals, Broadcom's market value surged by $150 billion following the announcement, driven by excitement over AI and data centers.

The agreement between OpenAI and AMD comes just weeks after OpenAI revealed a $100 billion chip deal with NVIDIA.

OpenAI has struck a multi-billion dollar deal with AMD, securing 6 gigawatts of compute capacity to power its AI data centers. In exchange, OpenAI could secure up to a 10% stake in AMD if it meets certain deployment milestones.

OpenAI's compute commitments now exceed $1.2 trillion, which is five times what all of big tech plans to spend on CapEx this year. This is also more than 90 times larger than OpenAI's projected $13 billion in revenue for this year.