In response to the announcement on the 13th that OpenA, a major artificial intelligence manufacturer, has reached a major cooperation agreement with semiconductor manufacturer Broadcom. The two parties will jointly design, develop and deploy large-s...
In response to the announcement on the 13th that OpenA, a major artificial intelligence manufacturer, has reached a major cooperation agreement with semiconductor manufacturer Broadcom. The two parties will jointly design, develop and deploy large-scale customized AI chips. Lu Xingzhi, a former well-known foreign analyst, said that compared to other manufacturers that give money and stocks in exchange for orders, Broadcom is the most powerful. No need to give away any money or spend a penny to win a large order for the AI accelerator of OpenAI's 10GW AI data center and the Ethernet solution for Scale up/Scale out cabinet connection.
Lu Xingzhi said on his Facebook fan page that he just said last week that he didn’t know if Broadcom, Oracle, CoreWeave, Nebius, and Taiwan’s major server manufacturers would also be queuing up to send money and stocks in exchange for orders. Unexpectedly, Broadcom was the most powerful. It didn’t cost any money (the OpenAI announcement didn’t say this, but it’s possible that the design service was sold cheaper), so it won the OpenAI 10GW AI data center AI accelerator and Scale up cabinet/Scale out. Large order for Ethernet solutions for rack-to-rack connections. These products will be shipped in 2H26 and completed by the end of 2029. It is currently judged that the AI accelerator will be system designed by OpenAI, and some know-how to create large language models will be embedded in the hardware, and others will be deployed by Broadcom (it should refer to the AI accelerator's circuit design/circuit layout/wafer manufacturing order and scale up/scale out Ethernet, PCIe and fiber optic connections).
Unlike Nvidia and AMD's cooperation project, which involves sending money in exchange for orders, Broadcom's cooperation project has not released any details. It is not clear how it is different from the previously announced cooperation projects. There are four questions:
1. Broadcom did not send any money, so who would provide the US$400 billion to US$500 billion to deploy a self-developed AI accelerator cabinet with 10GW of computing power?
2. Including Nvidia’s 10GW order and AMD’s 6GW order, the total is 26GW AI computing power data center, far exceeding market expectations of 20GW and industry standards? Or will Open AI use part of Nvidia's $100 billion (of course other investors will participate in the event) to buy self-developed chips from Broadcom (which means that Nvidia's 10GW GPU order and Broadcom's 10GW ASIC order may be partly double-counted). This is very funny. Did the leader know in advance to put out the fire (it is better to participate than to be kicked out), or was he betrayed afterwards? Or is it wrong? One yard counts the other. One family has barbecue and three families enjoy it. Brother Sam is so domineering. He wants all 26GW of computing power?
3. Broadcom allows OpenAI, a novice chip designer, to mass-produce AI accelerators in one year. Don’t you think it’s strange? One time, it helped Google design an AI accelerator, and another time it helped Amazon design an AI ASIC. I wonder if Meta is also looking for Broadcom. Especially Google, isn't it worried that some of the design plans for future chips will be shared? It's very possible that like Apple, they may place orders directly with TSMC and do the circuit design and layout themselves, but the prerequisite is to recruit more semiconductor design talents from Apple. Is it possible that before, it asked MediaTek to be responsible for layout and wafer orders, and kept the early design confidential, just to get rid of Broadcom's control?
4. Finally, Broadcom is also on board. Astera Lab, which competes with Broadcom for scale out switch IC, has a negative response of 3% this morning. Credo, which cooperates with Broadcom, has a positive response of 8%. What other companies are in the Broadcom industry chain and anti-Broadcom camp?