The Complicated Alliances Behind OpenAI’s First AI Chip

OpenAI designed a custom AI server chip with Broadcom. To get Broadcom to finance production, Microsoft must buy 40% of the chips or OpenAI must find alternative buyers.

Broadcom + OpenAI 10 GW Custom Chip Partnership, “Nexus” Announced Oct 2025 PHASE 1 Jalapeno Chip 1.3 GW · $18B cost Made by TSMC Microsoft Data Center* 500 MW powered by Jalapeno Oracle Data Center* Capacity TBD ChatGPT and other OpenAI products

* Per OpenAI’s proposal. • Source: The Information reporting