OpenAI Faces $18 Billion Stalemate in Chip Project with Broadcom

OpenAI has encountered its first significant financial hurdle in its plan to become independent from Nvidia. According to information published on Thursday, May 7, 2026, by The Information, the company led by Sam Altman was unable to secure an $18 billion funding round intended for the initial phase of its custom chip project in partnership with Broadcom.

The Cost of Hardware Independence

The stalled amount is part of a multi-billion-dollar infrastructure initiative estimated at $500 billion. The main goal is to develop proprietary AI accelerators and build data centers with a capacity of 10 gigawatts between 2026 and 2029. However, the financial market appears to be reacting cautiously to the massive capital volume required to support this expansion.

According to industry analysts, the difficulty in raising the initial $18 billion reflects a shift in creditors' perceptions. Although OpenAI continues to report rapid revenue growth, the operational costs of maintaining and training large-scale models raise doubts about the speed of return on investment (ROI). As a direct reflection of the uncertainty, Broadcom (AVGO) shares fell in morning trading.

Impact on Deployment Schedule

The partnership with Broadcom is seen as crucial for OpenAI to implement its custom silicon by the end of 2026. Sources consulted by Phemex News suggest that the company may be forced to restructure the funding round or seek new institutional partners to avoid delays in the hardware timeline.

If the stalemate persists, OpenAI's reliance on Nvidia GPUs could extend longer than originally planned. This scenario benefits Nvidia in the short term but keeps the semiconductor market under pressure, as the demand for computing power continues to outpace global supply. So far, neither OpenAI nor Broadcom have issued official comments on the funding challenges.

Check out the full report on The Information.