Broadcom rallies on report that OpenAI is the new key customer that’s boosting its 2026 revenue outlook “significantly”
Broadcom shares were as much as ~9% higher in early trading on Friday after the Financial Times reported that OpenAI is set to produce its first AI chips in partnership with Broadcom — seemingly confirming the ChatGPT trailblazer as the customer that Broadcom CEO Hock Tan had alluded to on yesterday’s earnings call.
After a modest Q2 earnings beat, shares of Broadcom were doing little of note in postmarket trading until Tan revealed the addition of a new big buyer that has recently added over $10 billion of orders for its AI business. He added that the outlook for next year’s AI revenues would “improve significantly” based on this hefty demand, which quickly sent shares up 3%. The semiconductor giant did not disclose the name of this customer, but people familiar with the matter contacted by the FT confirmed OpenAI as the new client.
Per the FT, production of the new, specialized chips will start next year, and they’ll be used by OpenAI internally, supporting its growing demand for the computing power to run its models and reducing the company’s reliance on the hotly sought-after inventory of Nvidia.
While the two companies’ initial collaboration has been hinted at before, specific details have previously been unclear.
Per the FT, production of the new, specialized chips will start next year, and they’ll be used by OpenAI internally, supporting its growing demand for the computing power to run its models and reducing the company’s reliance on the hotly sought-after inventory of Nvidia.
While the two companies’ initial collaboration has been hinted at before, specific details have previously been unclear.
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