OpenAI is accelerating its push to dominate the artificial intelligence landscape with a staggering $500 billion chip initiative involving Broadcom Inc. (NASDAQ:AVGO).

On Monday, the company behind ChatGPT struck a multibillion-dollar agreement with Broadcom to co-design custom chips capable of powering its AI models, marking one of the most extensive semiconductor procurement campaigns in history.

According to the Financial Times, the deal could cost OpenAI between $350 billion and $500 billion, bringing its total chip capacity plans to over 26 gigawatts—comparable to the energy output of 26 nuclear reactors.

Chief Executive Sam Altman said the company has worked with Broadcom for 18 months to develop silicon tailored for AI inference, the computational process of responding to user queries.

“The biggest joint industrial project in human history” is how Altman described the AI infrastructure push.

Broadcom CEO Hock Tan compared the AI revolution to the advent of the internet or railroads, calling it a "critical utility over time for 8 billion people globally."

Shares of Broadcom Inc. rallied as much as 9% during premarket trading in New York, on track to fully recoup losses from Friday.

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