Inkhabar webdesk

(Reuters) -OpenAI has partnered with Broadcom to produce its first in-house artificial intelligence processors, the latest chip tie-up for the ChatGPT maker as it races to secure the computing power needed to meet surging demand for its services. Shares of Broadcom rose more than 12% in premarket trading. The companies said on Monday that OpenAI would design the chips, which Broadcom will develop and deploy starting in the second half of 2026. They will roll out 10 gigawatts' worth of custom chips, whose power consumption is roughly equivalent to the needs of more than 8 million U.S. households or five times the electricity produced by the Hoover Dam. The agreement is the latest in a string of massive AI chip investments that have highlighted the technology industry's surging appetite for computing power as it races to build systems that meet or surpass human intelligence. OpenAI last week unveiled a 6-gigawatt AI chip supply deal with AMD that includes an option to buy a stake in the chipmaker, days after disclosing that Nvidia plans to invest up to $100 billion in the startup and provide it with data-center systems with at least 10 gigawatts of capacity. "Partnering with Broadcom is a critical step in building the infrastructure needed to unlock AI's potential," OpenAI CEO Sam Altman said in a statement. Financial details of the agreement were not disclosed and it was not immediately clear how OpenAI would fund the deal. CUSTOM CHIP BOOM The tie-up with Broadcom, first reported by Reuters last year, places OpenAI among cloud-computing giants such as Alphabet-owned Google and Amazon.com that are developing custom chips to meet surging AI demand and reduce dependence on Nvidia's costly processors that are limited in supply. The approach is not a sure bet. Similar efforts by Microsoft and Meta have run into delays or failed to match the performance of Nvidia chips, according to media reports, and analysts believe custom chips do not pose a threat to Nvidia's dominance in the short term. The rise of custom chips has, however, turned Broadcom – long known for its networking hardware – into one of the biggest winners of the generative AI boom, with its stock price rising nearly six-fold since the end of 2022. The company unveiled a blockbuster $10 billion custom AI chip order in September from an unnamed new customer that some analysts and market watchers speculated was OpenAI. Broadcom and OpenAI said on Monday that the deployment of the new custom chips would be completed by the end of 2029, building on their existing co-development and supply agreements. The new systems will be scaled entirely using Broadcom's Ethernet and other networking gear, giving the company an edge over smaller rivals such as Marvell Technology and challenging Nvidia's InfiniBand networking solution. (Reporting by Max Cherney in San Francisco and Arsheeya Bajwa in Bengaluru; Editing by Shinjini Ganguli)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

(Reuters) -Cloud software provider Salesforce said on Monday it would invest $15 billion in San Francisco over the next five years to support artificial intelligence innovation and workforce development in the city. The investment will support a new AI incubator hub on Salesforce's San Francisco campus and help companies adopt AI agents, which can perform tasks on behalf of the users, the company said. "This $15 billion investment reflects our deep commitment to our hometown — advancing AI innovation, creating jobs and helping companies and our communities thrive," Chief Executive Marc Benioff said in a statement. (Reporting by Jaspreet Singh in Bengaluru; Editing by Shilpi Majumdar)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

(Reuters) -OpenAI has partnered with Broadcom to produce its first in-house artificial intelligence processors, the latest chip tie-up for the ChatGPT maker as it races to secure the computing power needed to meet surging demand for its services. Shares of Broadcom rose more than 12% in premarket trading. The companies said on Monday that OpenAI would design the chips, which Broadcom will develop and deploy starting in the second half of 2026. They will roll out 10 gigawatts' worth of custom chips, whose power consumption is roughly equivalent to the needs of more than 8 million U.S. households or five times the electricity produced by the Hoover Dam. The agreement is the latest in a string of massive AI chip investments that have highlighted the technology industry's surging appetite for computing power as it races to build systems that meet or surpass human intelligence. OpenAI last week unveiled a 6-gigawatt AI chip supply deal with AMD that includes an option to buy a stake in the chipmaker, days after disclosing that Nvidia plans to invest up to $100 billion in the startup and provide it with data-center systems with at least 10 gigawatts of capacity. "Partnering with Broadcom is a critical step in building the infrastructure needed to unlock AI's potential," OpenAI CEO Sam Altman said in a statement. Financial details of the agreement were not disclosed and it was not immediately clear how OpenAI would fund the deal. CUSTOM CHIP BOOM The tie-up with Broadcom, first reported by Reuters last year, places OpenAI among cloud-computing giants such as Alphabet-owned Google and Amazon.com that are developing custom chips to meet surging AI demand and reduce dependence on Nvidia's costly processors that are limited in supply. The approach is not a sure bet. Similar efforts by Microsoft and Meta have run into delays or failed to match the performance of Nvidia chips, according to media reports, and analysts believe custom chips do not pose a threat to Nvidia's dominance in the short term. The rise of custom chips has, however, turned Broadcom – long known for its networking hardware – into one of the biggest winners of the generative AI boom, with its stock price rising nearly sixfold since the end of 2022. The company unveiled a blockbuster $10 billion custom AI chip order in September from an unnamed new customer that some analysts and market watchers speculated was OpenAI. Broadcom and OpenAI said on Monday that the deployment of the new custom chips would be completed by the end of 2029, building on their existing co-development and supply agreements. The new systems will be scaled entirely using Broadcom's Ethernet and other networking gear, giving the company an edge over smaller rivals such as Marvell Technology and challenging Nvidia's InfiniBand networking solution. (Reporting by Max Cherney in San Francisco and Arsheeya Bajwa in Bengaluru; Editing by Shinjini Ganguli)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Heekyong Yang SEOUL (Reuters) -Samsung Electronics is expected to post its highest third-quarter profit since 2022, driven by higher memory chip prices supported by server demand as customers rebuild inventories, analysts' estimates showed. The world's biggest maker of memory chips is projected to report an operating profit of 10.1 trillion won ($7.11 billion) for the July-September period, according to LSEG SmartEstimate from 31 analysts, which is weighted toward those who are more consistently accurate. This would be up 10% from a year earlier. Analysts attributed the recovery mainly to better conventional memory chip pricing, which would offset weaker sales volumes of high-bandwidth memory (HBM) chips as Samsung has yet to supply its latest HBM products to Nvidia. HBM chips, critical for artificial intelligence (AI) development, are designed to reduce power consumption and process large datasets by stacking chips vertically. Analysts said demand for memory chips, particularly from hyperscalers and AI-related investments for services such as ChatGPT, have put more workload on general servers, thus boosting conventional memory chip prices. Prices of some DRAM chips, widely used in servers, smartphones and PCs, jumped 171.8% in the third quarter from a year earlier, according to TrendForce data. While Samsung's conventional memory business performed well, analysts said delays in supplying its latest 12-layer HBM3E chips to Nvidia have hurt its profit and share price. Rivals SK Hynix and Micron have gained more from AI-driven demand, while Samsung's exposure to China, where advanced chip sales are restricted by the United States, has constrained its growth. Analysts said market sentiment toward Samsung's shares and chip business, including both memory and contract chip manufacturing, is expected to improve as it secures supply deals with major customers such as OpenAI and Tesla. Samsung shares have risen more than 43% following its announcement of a chip supply deal with Tesla in July. During OpenAI CEO Sam Altman's visit to South Korea earlier this month, Samsung, SK Hynix and OpenAI announced partnerships to supply advanced memory chips to the Stargate project. The AI chip deal between OpenAI and AMD, one of Samsung's major HBM customers, would also benefit Samsung, said Ryu Young-ho, a senior analyst at NH Investment & Securities. Ryu added that Samsung's $16.5 billion foundry deal with Tesla has lifted expectations that Samsung's struggling contract chip manufacturing business could win more orders from major tech firms if the company delivers the project as planned. While recent AI-driven supply deals signal a positive outlook for Samsung, analysts cautioned that uncertainties remain, including potential U.S. tariffs on chips and China's tightened export controls on rare earth materials used in advanced chips and manufacturing equipment. In September, Micron said it expects to sell out all of its HBM chips for calendar year 2026 in the coming months due to strong demand. Samsung will announce its estimates on revenue and operating profit on Tuesday, with full results due later this month. ($1 = 1,420.1000 won) (Reporting by Heekyong Yang; Editing by Jacqueline Wong)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)