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Charlie Kavas, President of Semiconductor Solutions Group broadcomSaid on Monday that OpenAI is not a secret $10 billion customer It announced this during its earnings call in September.
Kavas appeared on CNBC’s “Squawk on the Street” with OpenAI President Greg Brockman to discuss their plans to jointly build and deploy 10 gigawatts of custom AI. artificial intelligence Accelerator.
The deal was largely expected as analysts had pointed to OpenAI as a potential new $10 billion partner for Broadcom. But after the companies officially unveiled their plans on Monday, Kavas said OpenAI doesn’t fit that description.
“I would love to get a $10 billion (buy order) from my good friend Greg,” Kavas said. “He hasn’t given me that drink yet.”
Broadcom did not immediately respond to CNBC’s request for additional comment.
OpenAI is on an AI infrastructure dealmaking blitz as the company looks to scale up its compute capacity to meet projected demand. Startup valued at $500 billion signs multi-billion dollar deal advanced precision instruments, NVIDIA And corewave In recent weeks.
Broadcom doesn’t disclose its large web-tier customers, but analysts have pointed out Google, meta and TikTok’s parent company ByteDance are its three big customers. During its quarterly call with analysts in September, Broadcom CEO Hock Tan said the fourth-largest customer had ordered $10 billion in custom AI chips.
Tan said during the call that the order has boosted Broadcom’s forecast for AI revenue next year, when shipments will begin.
OpenAI and Broadcom have been working together for the past 18 months, and they will begin deploying racks of custom-designed chips late next year, the companies said on Monday. This project will be completed by 2029.
“By creating our own chip, we can incorporate what we’ve learned from building Frontier models and products directly into the hardware, unlocking new levels of capability and intelligence,” Brockman said in a release.
Watch: Broadcom Chairman Charlie Kavas: The secret $10 billion customer is not OpenAI
