Broadcom to develop custom AI chips for Google through 2031
Broadcom signed a long-term deal with Google to develop custom AI chips through 2031. The firm also reached a capacity agreement with AI startup Anthropic.
BROADCOM INC has entered into a long-term agreement with ALPHABET INC-CL A to develop and supply future generations of custom artificial intelligence chips. The collaboration, announced on Monday, extends through 2031 and focuses on providing components for the next generation of AI racks. Following the announcement, shares of the chip manufacturer rose approximately 3% in extended trading.
In a related development, the semiconductor firm also secured a contract with the AI startup Anthropic. Starting in 2027, this deal will grant Anthropic access to roughly 3.5 gigawatts of AI computing capacity, utilizing processors developed for Google. While the specific financial details of these agreements were not made public, the move underscores a shift in the hardware landscape as firms seek alternatives to the expensive graphics processors produced by NVIDIA CORP.
