Broadcom reportedly won't build OpenAI's custom chip unless Microsoft buys 40 percent of them

OpenAI’s first custom AI chip effort is running into financing trouble.

Broadcom reportedly wants Microsoft to commit to buying about 40% of the chips before proceeding, but Microsoft has not agreed.

The broader Nexus plan targets 10 gigawatts of data center capacity, with the first chip, Jalapeno, expected in 2027.

The standoff highlights how OpenAI’s push to reduce reliance on Nvidia still depends on outside funding and Microsoft’s support.