Inside OpenAI’s $18B Chip Financing Snag
Summary
Cloud Reporter Anissa Gardizy reveals why OpenAI’s custom chip deal with Broadcom is facing a financing roadblock. She explains why Microsoft’s refusal to commit to the hardware leaves Sam Altman scra
Transcript Excerpt
Tell us a little bit about what you found with respect to how financing is going for this Open AI Broadcom chip. Open AI and Broadcom are in the middle of pretty tense negotiations right now as Open AI hopes to send its first custom chip to production at TSMC. They're at a little bit of a roadblock right now because they're trying to agree on vendor financing terms for this initial $18 billion deal and that hasn't been figured out yet. So, even though these two companies announced their partnership last October, they did not have the financing figured out and they're both going back and forth um you know, kind of running at a deadline to when Broadcom needs to alert TSMC to save capacity for Open AI's chip so that it's ready next year. Okay, so let's unpack each of those elements here. Fir…