Apple's new BFF, Broadcom, reveals three hyperscalers want to deploy 1,000,000 GPUs or XPUs by 2027; something that will make Nvidia wince

Apple’s new BFF, Broadcom, reveals three hyperscalers want to deploy 1,000,000 GPUs or XPUs by 2027; something that will make Nvidia wince

Broadcom is reportedly collaborating with Apple to develop its own AI chip, with rumors suggesting involvement from TikTok’s parent company, ByteDance, and OpenAI. This partnership is in response to hyperscalers seeking to reduce reliance on Nvidia’s AI chips.

Nvidia has seen significant success due to the generative AI trend, but faces competition from AMD and hyperscalers looking to design their own XPUs. Companies like Broadcom and Marvell stand to benefit from this shift as hyperscalers develop their custom AI accelerators.

Broadcom’s President and CEO, Hock Tan, revealed in an earnings call that multiple hyperscalers are working on developing their own AI accelerators, with Broadcom supporting them. There are speculations that Broadcom is collaborating with Google, Meta, ByteDance, and OpenAI on custom AI chips, while also assisting Apple in creating an AI server chip.

Tan mentioned that Broadcom is well-positioned with cutting-edge technology to secure its market share in the AI chip industry. The company is confident in its capabilities to provide advanced networking technologies essential for AI processing. This move signifies a significant shift in the AI chip landscape, with Broadcom playing a key role in enabling companies to develop their AI solutions.