OpenAI’s AI Chip Deal With Broadcom Hits $18 Billion Financing Snag

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When OpenAI and chip designer Broadcom announced last fall that they would make custom artificial intelligence chips together, they positioned it as a done deal. The companies said the deal would bring enough chips online before 2030 to consume 10 gigawatts of power, equivalent to five Hoover Dams’ worth of electricity, in a bid to lessen OpenAI’s costly dependence on Nvidia hardware. What they didn’t say was that they hadn’t figured out how OpenAI would pay for the project.