Nvidia has seen the greatest gains from the recent AI surge, recently becoming the third most valuable company globally, surpassing Alphabet and Amazon, and briefly taking the top spot in June, ahead of Microsoft and Apple.
Big tech companies are eager to participate in AI, but many want to avoid relying on Nvidia, prompting them to seek alternatives. Microsoft and OpenAI are reportedly planning a data center project featuring a potentially AMD-powered AI supercomputer named “Stargate.”
The Information reports that OpenAI has been in talks with several chip designers, including Broadcom, about creating a new AI chip to compete with Nvidia.
Broadcom is recognized for its wide range of semiconductor and infrastructure software solutions, with products used in data center networking, home connectivity, broadband access, telecommunications equipment, smartphones, and base stations.
Currently, Broadcom ranks as the 13th most valuable company globally, placing it above well-known tech giants like Samsung, AMD, Intel, Arm, IBM, and Qualcomm.
It remains unclear if OpenAI’s discussions with Broadcomm and others are related to Stargate. However, The Information suggests that any new development is unlikely to match Nvidia’s current offerings, given the extensive research, development, and financial investment involved.
Despite this, OpenAI has reportedly hired former Google employees with experience in developing Tensor processors, indicating the company’s serious intent to develop its own hardware.
