Broadcom CEO says generative AI will become a much larger part of global GDP

Core Insights - Artificial intelligence (AI) is projected to significantly increase its contribution to global GDP, potentially rising from 30% to 40%, equating to an additional $10 trillion annually [1] - Broadcom has formed a partnership with OpenAI to develop and deploy 10 gigawatts of custom AI accelerators, leading to a notable increase in Broadcom's stock price by 9.88% [2] - Broadcom is collaborating with several major players in the AI space, securing substantial chip orders and focusing on the development of AI chips for large cloud customers [3][4] Company Developments - Broadcom's CEO highlighted the company's strong position in the AI market, benefiting from increased demand for chips and networking equipment as hyperscalers expand their AI capabilities [1] - The partnership with OpenAI is part of a broader trend of expensive collaborations among major tech companies in the AI sector [2] - Broadcom is working with approximately seven key players in the industry, with four being significant customers that have placed large-scale production orders [4]