Shares of Broadcom hire top of the market today after announcing a new deal with Open AI

to deploy 10 gigawatts of custom AI chips over the next four years as Open AI looks to lock in the

chip supply and infrastructure to stay ahead. Our McKenzie Seagalas has more on that in today's

tech check and Mac maybe you can summarize everything we've been seeing lately because

open as announced a number of deals like this. Yes they have so for four or for Mac, maybe you can summarize everything we've been seeing lately because Open AIs announced

a number of deals like this. Yes, they have. So for 14 months now, Sam Altman and Broadcom

CEO, Hawk Tan, have quietly been working on custom AI chips to compete with the GPUs made by

Nvidia and AMD. Now it is official. OpenAI is teaming up with Broadcom to co-design and deploy custom

accelerators, one of the largest infrastructure commitments we've seen yet. A person close to the deal

tells me that unlike its deals with Nvidia and AMD, no equities involved. Plus, the chips are

expected to be roughly 30% cheaper than current GPU options, with OpenAI controlling

everything from transistor design to full rack deployment.

Now by going custom, OpenAI brings costs down and stretches its infrastructure dollars.

Altman says they're chasing major efficiency gains here, faster models, cheaper outputs,

better performance. But more than that, this deal

lays bare Altman's broader playbook. Build protective modes wherever possible. Because at this

point, there's no technical advantage. The transformer architecture is open and training data

is increasingly commoditized. So the next frontier of defensibility lies in owning the stack.

The broadcom deal, that checks the hardware box.

OpenAI is also betting on coders.

Last week at Dev Day, Altman debuted a mix of products specifically for developers, including

Agent Kit and a new app store that lives inside of ChatGBT.

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