OpenAI's New Chip Deal with Broadcom Raises Environmental Concerns
OpenAI has partnered with Broadcom to design and develop 10 gigawatts of custom AI chips and systems. This deal, expected to use as much power as 8 million US households, has raised concerns about AI's environmental impact.
OpenAI, known for services like ChatGPT and Sora, has previously collaborated with companies like Nvidia and AMD for computing resources. Now, it's teaming up with Broadcom to create AI accelerators, giving OpenAI a larger role in the hardware powering its services.
The project, expected to start deployment in late 2026, will use as much electricity as a large city. This power intensity highlights the growing energy consumption of data centers, which are projected to consume between 6.7% to 12% of total US electricity by 2028. OpenAI's co-founder and CEO, Sam Altman, sees this partnership as a critical step in building AI infrastructure.
Broadcom CEO Hock Tan had previously hinted at securing a new $10 billion customer, believed to be OpenAI. OpenAI's high-profile partnerships, including those with NVIDIA and Oracle for the Stargate AI project, indicate the company's active deployment plans, with capacity nearly reaching 7 gigawatts by late 2025.
OpenAI's partnership with Broadcom signals a significant step in the company's growth and influence in AI hardware. However, it also underscores the need for sustainable energy solutions to mitigate the environmental impact of AI's increasing power demands.
