On October 8, the Wall Street Journal reported, citing informed sources, that Broadcom (AVGO.O) has been actively pursuing more than $50 billion in funding over recent weeks. This substantial financial injection is earmarked for the production of custom AI chips that are being developed in collaboration with OpenAI. Major financial institutions, including Apollo and Blackstone, have already begun discussions about participating in this financing endeavor. At present, these negotiations are still in their preliminary stages, and the final amount of funding could undergo adjustments.

This financing initiative is anticipated to support the production capacity for OpenAI's custom chips on a scale of several gigawatts. There is a possibility that the funding could be finalized as early as the end of this year. Internally at OpenAI, this chip project has been dubbed 'Nexus.' The first and second generations of these chips have been assigned the codenames Jalapeño and Serrano, respectively. Earlier, OpenAI and Broadcom jointly announced their partnership to develop a custom chip system with a capacity of 10 gigawatts. They have outlined plans for the continuous deployment of this system, starting from the second half of 2026 and extending through to the end of 2029.