OpenAI-Broadcom Chip Plan Hits $18 Billion Snag as Microsoft Holds Sway
OpenAI’s $18 billion plan with Broadcom to finance a custom AI server chip program has hit a snag, and Microsoft’s willingness to buy the chips could decide whether the project moves forward, The Information reported Thursday. The publication said Microsoft holds sway over development of the inference chip, highlighting how OpenAI’s relationship with Microsoft has become central to the effort.
The setback adds a new hurdle to OpenAI’s broader push to secure computing capacity. Earlier this week, President Greg Brockman said the company expects to spend $50 billion on computing power in 2026, after executives said demand for its enterprise and consumer products remained strong and that compute capacity, rather than demand, was the main constraint on growth.
From the sources (20 posts)
@wesrothOpenAI's Chief Financial Officer has publicly pushed back against recent reports suggesting the company is missing its internal growth and revenue targets. According to the CFO, the company is experiencing a "vertical wall of demand" for i
@businessOpenAI expects to spend $50 billion on computing power this year to support its artificial intelligence software, according to co-founder and President Greg Brockman
@financialjuiceOpenAI President Brockman: OpenAI are to spend $50 billion on computing in 2026.
@stocksavvyshayOpenAI cofounder and President Greg Brockman says the company plans to spend $50B on compute in 2026.
@polymarketmoneyOpenAI President Greg Brockman says the company plans to spend $50B on compute in 2026.
@financialjuiceOpenAI's AI chip agreement with Broadcom encounters $18 billion funding hurdle - The Information
@firstsquawkOpenAI–Broadcom AI Chip Partnership Hits $18 Billion Funding Snag: The Information Reports
@wallstengineOpenAI’s Broadcom $AVGO custom AI chip deal has hit an $18B financing snag. Broadcom reportedly wants Microsoft to buy ~40% of first-phase chips, but Microsoft hasn’t committed, a key risk for OpenAI’s plan to cut Nvidia reliance. Source:
@negligible_cap*OPENAI, BROADCOM AI CHIP DEAL HITS FINANCING SNAG: INFORMATION *OPENAI WARNS OF $18B FINANCING SNAG: INFORMATION OpenAI is running into financing issues for their chip deal with $AVGO, which is selling off. Who coulda saw that coming. Cer
@amirnew: Microsoft holds sway over OpenAI's development of a custom AI server chip for inference. $18 billion in financing for the chip hinges on Microsoft.
@amir👀👀👀Because OpenAI and Microsoft “have not disclosed the full nuances of our relationship, Broadcom does not fully appreciate that risk and believes it is within [OpenAI’s] control to require Microsoft to make the purchase,” the memo said.
@jessicalessinRT @anissagardizy8: NEW: When OpenAI and Broadcom announced they would make 10 GW of custom AI chips together, they positioned it as a done…
@stocksavvyshayOpenAI’s reported $AVGO custom AI chip deal has allegedly hit a $18B financing snag tied to $MSFT not committing to ~40% of the first wave chips. Hard to buy when AI compute demand is still eating every credible chip supply source alive. h
@edzitronAnother legendary @anissagardizy8 report
@theinformationRT @anissagardizy8: NEW: When OpenAI and Broadcom announced they would make 10 GW of custom AI chips together, they positioned it as a done…
@theinformationRT @amir: new: Microsoft holds sway over OpenAI's development of a custom AI server chip for inference. $18 billion in financing for the…
@zephyr_z9Satya is twisting the knife
@theinformationExclusive: OpenAI’s $18 billion chip plan with Broadcom has hit a financing snag. Microsoft’s willingness to buy the chips could decide the deal’s fate.
@shanumathew93Always be skeptical of the “done deals” across the entire stack. We are in a PR-driven market. Do the work on what’s real or not and holds up if conditions on the ground change.
@yahoofinance$AVGO sinks on report of financing negotiations in OpenAI deal 📉