Broadcom in talks with OpenAI to develop new AI chip: Rpt.

Broadcom (AVGO) is in talks to develop new AI chips with OpenAI — which Microsoft (MSFT) has a majority stake in — according to a report from The Information. In addition, the report notes that OpenAI has been employing ex-Google employees from a unit that was producing Google's (GOOG, GOOGL) AI chip.

Market Domination anchors Josh Lipton and Julie Hyman break down the latest developments for Broadcom and what it could mean for the chip company moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Nicholas Jacobino

Video Transcript

Breaking news.

Now, Broadcom reportedly has been in talks with Open A I to develop a new chip and Broadcom shares have been jumping on this news although right now they're just about 1%.

But if you look at the chart, you see an increase here.

This is according to a report in the information um which says that open A I has been hiring former members of a Google unit that produces Google's A I chip.

Um and then has been talking to chip designers like Broadcom uh about now working on this chip.

Yeah, I mean, Broadcom, listen, if, if you just look at the stock, it's had this incredible run.

Um And in part that's because investors have decided that Hock Tan's company is one of the smart ways to just play the mega trend of A I and the street loves Broadcom as well.

I mean, like Bernstein Stacy Raza in front of the show, one of his favorite names in because again, he just thinks it has one of the best A I stories in the industry, right?

There's been a lot of talk about various um of the so called hyper Scalars developing their own A I chips and that's sort of materialized into differing degrees.

So we'll see if this action, you can just say words like Sam Altman and open A I and probably get a positive response that yes they do.