OpenAI is trying to be a Google with its tie-up with Broadcom, says analyst and they don’t seem to be pleased

OpenAI, the world’s largest startup valued at $500 billion, is partnering with chipmaker Broadcom to develop custom AI chips, a move that some analysts say mirrors Alphabet Inc.’s Google, which reduced costs by designing its own chips using Broadcom’s technology. According to Bloomberg Intelligence analyst Mandeep Singh, “OpenAI might be trying to emulate Alphabet Inc.’s Google, which made its own chips using Broadcom’s technology and saw lower costs compared with other AI companies, such as Meta Platforms Inc.” Google’s success with Broadcom may have steered OpenAI to that chipmaker, rather than suppliers such as Marvell Technology, Singh added.

The collaboration, announced by OpenAI CEO Sam Altman, has been in progress for 18 months and aims to optimize the entire AI technology stack, from transistors to user interactions with ChatGPT.