Broadcom shares surged as much as 9% on Monday after the semiconductor giant announced a sweeping new partnership with OpenAI to co-develop 10 gigawatts of custom AI accelerators, cementing its role as one of the biggest hardware suppliers in the global AI buildout.
The move extends Broadcom’s remarkable run this year the stock is now up roughly 50% in 2025, riding the wave of artificial intelligence infrastructure demand that has reshaped the semiconductor industry.
Under the strategic agreement announced Monday, OpenAI will design a new class of AI systems while Broadcom will assist in developing and deploying them at scale. The companies said deployment of these accelerator racks and network systems will begin in the second half of 2026 and continue through 2029, spanning OpenAI’s own facilities as well as partner data centers across the globe.
A new milestone in AI infrastructure
“Developing our own accelerators adds to the broader ecosystem of partners all building the capacity required to push the frontier of AI to provide benefits to all humanity,” said Sam Altman, CEO of OpenAI, in a statement accompanying the announcement.
Financial details of the agreement weren’t disclosed, but analysts estimate the deal to be worth tens of billions of dollars, adding to what has already been a $1 trillion AI compute expansion by OpenAI in 2025 alone.
Charlie Kawwas, president of Broadcom’s Semiconductor Solutions Group, called the partnership a landmark for scalable AI systems. “Our partnership with OpenAI continues to set new industry benchmarks for the design and deployment of open, scalable, and power-efficient AI clusters,” Kawwas said.
The scale of the project 10 gigawatts of accelerator power puts it among the largest single AI hardware contracts ever signed, rivaling deals OpenAI has inked with NVIDIA, AMD, and Microsoft for chip supply and infrastructure buildouts.
Another market-moving OpenAI partnership
This is not the first time an OpenAI deal has sent a ripple through financial markets. In September, AMD’s stock soared nearly 40% in a single day after OpenAI unveiled a similar partnership that included an option for OpenAI to take up to a 10% equity stake in the chipmaker.
The Broadcom deal further underscores how AI hardware alliances have become a new driver of investor sentiment, as chipmakers race to meet the unprecedented computing demands of advanced AI models like ChatGPT and GPT-5.
While OpenAI’s software breakthroughs dominate headlines, its lesser-known role as one of the world’s largest infrastructure spenders is transforming the semiconductor landscape. Analysts estimate the company now accounts for a significant share of global demand for AI data center chips, network systems, and energy-intensive computing hardware.
A boost for Broadcom’s long-term vision
The deal reinforces Broadcom’s expanding influence beyond its traditional networking and chip businesses. With this agreement, Broadcom positions itself at the core of AI infrastructure, competing with other hardware suppliers that have seen explosive growth as AI adoption accelerates across industries.
For investors, the partnership validates Broadcom’s diversification strategy and its push into the AI accelerator market, where custom silicon and advanced networking components are becoming critical to large-scale AI training and inference.
“This is a long-duration revenue pipeline that aligns Broadcom with one of the most influential players in the AI revolution,” said one Wall Street analyst. “It gives Broadcom deep exposure to the next generation of compute not just chips, but entire AI systems.”
AI-fueled momentum
The announcement adds fresh momentum to an already overheated AI trade, as investors pile into companies seen as key beneficiaries of the ongoing AI infrastructure boom. Broadcom’s shares closed near record highs Monday following the news, marking another milestone in a year defined by historic tech gains.
For OpenAI, the deal signals its determination to diversify hardware partnerships and avoid overreliance on any single chip supplier. For Broadcom, it marks a leap into the center of the AI compute revolution one that could define the next decade of technological growth.
