AI accelerators

.Broadcom beat Q4 expectations, reporting $1.95 EPS and $18.02 bn revenue, and forecast FY‑Q1 revenue of about $19.1 bn, a 28% YoY rise driven by AI demand. AI‑related chip sales doubled to $8.2 bn, boosting net income 97% to $8.51 bn. The company added a fifth custom‑AI customer, with orders totaling $11 bn and a $1 bn commitment for 2026, bringing its AI backlog to $73 bn. Broadcom’s XPU strategy aims to combine GPU throughput with ASIC efficiency, positioning it as a full‑stack AI infrastructure provider amid intense competition from Nvidia and others.

At Re:Invent 2025, AWS unveiled Trainium 3, a custom AI‑training chip delivering roughly four‑fold performance and energy gains, promising up to 50 % cost cuts. It also introduced AWS Factories, an on‑premise service that blends Trainium accelerators with Nvidia GPUs for a full‑stack AI solution. AWS added 3.8 GW of compute in the past year and targets over 12 GW by 2027, which analysts say could generate $150 billion in annual revenue. The dual hardware strategy aims to reduce GPU‑dependency, enhance supply‑chain resilience, and sharpen AWS’s competitive edge against Azure and Google Cloud.

Enterprises are strategically diversifying away from Nvidia in the AI accelerator market due to over-reliance vulnerabilities including pricing, supply chains, and geopolitical risks. Alternatives like Huawei offer negotiating leverage, mitigate vendor lock-in, and provide access to alternative supply chains, especially in regions with Nvidia restrictions. Huawei’s Ascend platform excels in inference workloads, offering potential cost and power efficiency. This transition involves a risk assessment, weighing diversification benefits against Nvidia’s established ecosystem. For some, this realignment is crucial for competitiveness and future-proofing AI initiatives.

Qualcomm is entering the data center AI accelerator market, challenging Nvidia’s dominance with its AI200 and AI250 chips planned for 2026 and 2027. Leveraging its expertise in mobile NPUs, Qualcomm aims to capitalize on the booming AI server market. Qualcomm emphasizes its total cost of ownership benefits and higher memory capacity (768GB per AI card). The company initially focuses on AI inference and offers flexible system configurations. A partnership with Saudi Arabia’s Humain demonstrates Qualcomm’s commitment to the sector.

OpenAI is aggressively pursuing strategic partnerships and hardware development, signaling a shift from solely focusing on algorithms to prioritizing infrastructure and custom silicon. Collaborations with Broadcom and acquisitions like Jony Ive’s startup aim to optimize AI accelerators and create innovative AI-native devices. The Stargate initiative solidifies OpenAI’s control over AI infrastructure through deals with Nvidia and AMD. Furthermore, OpenAI is actively cultivating its developer ecosystem, transforming ChatGPT into an AI operating system and fostering tight integration to enhance its platform’s stickiness. This vertical integration strategy mirrors those of Apple and Microsoft, aiming to establish OpenAI as a dominant force in the AI landscape.

Broadcom CEO Hock Tan anticipates AI to significantly impact global GDP, potentially increasing “knowledge-based” industries’ share from 30% to 40%. Broadcom is strategically partnering with companies like OpenAI to develop AI accelerators and collaborating with multiple cloud providers, securing substantial chip orders, including $10 billion from one client. The company’s focus is on AI infrastructure and revenue-generating partnerships, reflecting confidence in the essential role of specialized hardware in AI’s growth.

Broadcom and OpenAI are collaborating to develop and deploy 10 gigawatts of custom AI accelerators, signaling intensified competition in AI infrastructure. This partnership, following OpenAI’s alliances with Nvidia, Oracle, and AMD, aims to diversify its supply chain and optimize compute resources. The initiative involves customized networking, memory, and compute components built on Broadcom’s Ethernet stack, potentially reducing OpenAI’s costs and enhancing efficiency. Broadcom’s stock surged, reflecting the growing demand for custom AI chips. OpenAI aims to expand compute capacity to meet the demands of advanced AI models and future superintelligence.