A hundred-billion-dollar client is not OpenAI; does Broadcom have other major clients?
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The officially announced 10-billion-dollar customer is not OpenAI, so speculation over the identity of Broadcom's mysterious client will restart in the market.
On October 13, according to CNBC, Charlie Kawwas, President of Broadcom's Semiconductor Solutions Group, made it clear that OpenAI is not the mysterious ten-billion-dollar customer announced during the company's September earnings call. This clarification puts an end to previous speculation in the market, while triggering a new wave of investor attention towards the real major client of Broadcom.
According to a Wallstreetcn article, Broadcom and OpenAI officially announced their cooperation plan on the 13th local time: they will jointly build and deploy a 10-gigawatt custom AI accelerator. On CNBC, when Kawwas appeared together with OpenAI president Greg Brockman, he stated:
"I would love to get a $10 billion order from my good friend Greg, but he has not given me that purchase order yet."
Previously, analysts widely expected that OpenAI would be Broadcom's new ten-billion-dollar partner, but after the official cooperation plan was announced, this speculation was directly denied.
With OpenAI excluded from the list of ten-billion-dollar customers, speculation over the identity of this mysterious client will now begin anew. Considering the current surge in demand for AI chips and Broadcom's leading position in custom chips, the identity of the customer behind this large order will remain a focus for investors.
According to a previous article by Wallstreetcn, on September 4 local time, Broadcom’s President and CEO Hock Tan said during an earnings call that the company had turned a potential customer into its formal fourth custom AI accelerator (XPU) client, securing production orders worth more than $10 billion. At the time, sources confirmed to the media that this mysterious new client was OpenAI.
CNBC reports that Broadcom does not disclose the specific identities of large-scale network clients, but analysts generally believe that Google, Meta, and TikTok’s parent company ByteDance are its three major clients.
Broadcom and OpenAI have cooperated for 18 months, and the two sides will begin deploying custom-designed chip racks by the end of next year, with the entire project expected to be completed by 2029.
OpenAI President Brockman stated that by building its own chips, the company will be able to directly embed experience gained from creating cutting-edge models and products into hardware, thereby unlocking new capabilities and intelligence levels.
This partnership is part of OpenAI’s large-scale AI infrastructure deal. The $500 billion-valued startup has, in recent weeks, signed multi-billion-dollar deals with AMD, NVIDIA, and CoreWeave to expand computing power to meet anticipated demand.
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