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OpenAI is reported as Broadcom’s fourth XPU customer, joining Google, Meta and ByteDance in designing chips to reduce reliance on Nvidia

by [email protected] (Wayne Williams)
September 11, 2025
in Technology
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  • OpenAI (in all probability) joins Google, Meta and ByteDance in Broadcom’s customized ASIC partnership
  • Broadcom secures $10 billion AI rack orders as Nvidia faces new rivals
  • Nvidia’s largest prospects pursue in-house chips with Broadcom guiding the transition

As we’ve reported greater than a brand new occasions prior to now, the AI {hardware} market is altering, with a few of Nvidia’s largest prospects in search of methods to chop prices and acquire extra management over their methods.

Moderately than relying solely on Nvidia’s pricey GPUs, corporations are starting to design their very own ASICs tailor-made to their workloads.

Broadcom is without doubt one of the larger gamers on this area, providing the experience wanted to show these customized designs into production-ready chips and methods.

Reporting on Broadcom’s monetary outcomes for its third quarter, The Subsequent Platform says the silicon provider has now secured a fourth buyer for its customized XPU program, including to partnerships with Google, Meta, and ByteDance.

Business stories and timing, counsel this latest consumer is OpenAI, which is growing its personal inference processor referred to as Titan below the management of Richard Ho, a former Google TPU engineer.


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Nvidia nonetheless dominates the market in fact – by a way – with its Blackwell GB300 NVL72, however deploying such rackscale methods is pricey, and companies with huge AI fashions need {hardware} designed to raised match their wants.

Customized ASICs are seen as a method to rein in prices whereas providing higher flexibility than an off-the-shelf GPU and Broadcom is nicely positioned to information complicated accelerator initiatives via design, manufacturing, and packaging.

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On a name with Wall Road analysts, chief government Hock Tan expanded on Broadcom’s unnamed fourth consumer (cough, OpenAI, cough), saying, “Now additional to those three prospects, as we had beforehand talked about, we now have been working with different prospects on their very own AI accelerators.”

“Final quarter, considered one of these prospects launched manufacturing orders to Broadcom, and we now have accordingly characterised them as a certified buyer for XPUs and, in reality, have secured over $10 billion of orders of AI racks primarily based on our XPUs,” Tan continued.

“And reflecting this, we now count on the outlook for our fiscal 2026 AI income to enhance considerably from what we had indicated final quarter.”

That $10 billion determine refers to finish AI rack methods, not Broadcom’s share for the underlying chip design.

Income from these orders is scheduled to start within the third quarter of fiscal 2026.

It is clear that Nvidia’s largest consumers are now not content material to rely solely on GPUs, and by investing in ASICs they’re betting that customized {hardware} will convey effectivity and management. With its experience, Broadcom is positioning itself as the corporate that may make these designs a actuality.

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Tags: BroadcomsByteDancechipscustomerDesigningFourthGooglejoiningMetaNVIDIAOpenAIreduceReliancereportedXPU
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