Core Viewpoint - Broadcom has signed a $10 billion agreement to supply AI data center hardware, likely for OpenAI, indicating a significant shift towards custom AI infrastructure [2][5][7] Group 1: Agreement Details - The agreement includes custom AI accelerators and related hardware tailored for specific workloads, with potential delivery of millions of AI processors [2][6] - Broadcom's CEO confirmed that the company has received over $10 billion in orders based on XPUs for AI racks, marking a transition from evaluation to full-scale commercial procurement [2][3] Group 2: Delivery Timeline - Delivery of the AI racks is expected in the third quarter of fiscal year 2026, with deployment potentially occurring in the fall of the same year [3][5] - The timeline aligns with reports that OpenAI's first custom AI processor, developed in collaboration with Broadcom, is anticipated to be operational by late 2026 to early 2027 [5] Group 3: Financial Implications - The $10 billion investment positions OpenAI among hyperscale cloud providers, with a comparison to Meta's projected capital expenditure of $72 billion in 2025 [6] - Based on an estimated cost of $5,000 to $10,000 per accelerator, the order could represent 100,000 to 200,000 XPUs, potentially distributed across thousands of racks and nodes [6] Group 4: Strategic Shift - OpenAI is transitioning from reliance on Microsoft Azure's AMD or Nvidia GPUs to self-developed infrastructure using Broadcom's custom chips, which may reduce costs and enhance negotiation leverage with existing suppliers [7]