OpenAI teams with Broadcom (AVGO) for AI chip production in 2026

Broadcom stock jumps after strong Q3 results and OpenAI deal buzz

OpenAI will begin mass production of its own AI chips in 2026 in collaboration with Broadcom (AVGO), according to reports. The move is aimed at reducing OpenAI’s reliance on Nvidia GPUs and securing long-term supply for its AI models. The chips are expected to be used internally only, not sold externally.

Broadcom Q3 FY25 Results (Ended Aug. 3, 2025)

• Revenue: $15.95B (+22% YoY)

• GAAP Net Income: $4.14B vs. $(1.88)B last year

• Non-GAAP Net Income: $8.40B

• GAAP EPS: $0.85 | Non-GAAP EPS: $1.69

• AI Revenue: $5.2B (+63% YoY), expected to reach $6.2B in Q4

• Free Cash Flow: $7.0B (44% of revenue)

• Q4 Guidance: Revenue ~$17.4B (+24% YoY), EBITDA margin ~67%

• Dividend: $0.59 per share

Market Reaction

• AVGO after hours: $320.11 +14.01 (+4.58%)

• Earnings strength and OpenAI partnership highlight Broadcom’s growing role in AI chip supply.