OpenAI's recent chip deals heap more pressure on TSMC
In recent weeks, OpenAI has signed blockbuster deals with AMD and Broadcom to build vast numbers of AI chips. Much of the focus has been on the financial implications, since OpenAI will need hundreds of billions of dollars to make good on its promises. As important as it is to look at the quite implausible financials, we also need to look at the broader implications for the industry. Like, the chips themselves, what that spells for the AI industry as a whole, and the added pressure on TSMC, the only chip company that can actually build this stuff.The DealsOpenAI’s deal with AMD will see the chip giant build out 6 gigawatts’ (GW) worth of GPUs in the next few years. The first 1 GW deployment of AMD’s Instinct MI450 silicon will start in the back end of 2026, with more to come. AMD’s [...]
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