OpenAI’s "Quiet" Plan to "Nationalize" the Entire AI Supply Chain… (Welcome, Broadcom)

“This MF’er don’t miss…” 

After locking up Nvidia, Oracle, and AMD in compute supply deals, Sam Altman’s empire has now bagged Broadcom to…*checks notes*... co-design chips for itself. Translation: the non-profit that became a monopoly now wants to become its own semiconductor company.

(Source: Giphy) 

In short, OpenAI’s been working with Broadcom for 18 months on what they’re calling “custom AI accelerators.” In practice, that means 10 gigawatts worth of hardware… chips optimized for inference and wired together through Broadcom’s Ethernet stack. Let me say that again for the people in the back… that’s TEN gigawatts. That’s roughly the same power draw as Greece for context. Of course, Altman says this “will lead to better, faster, cheaper models,” which means he’s tired of solely selling his soul to Jensen Huang. For this reason, Broadcom’s reward was a 10% pop in market cap and another seat at the AI casino table.

(Source: CNBC) 

Naturally, this latest deal pushes OpenAI’s compute commitments to ~33 gigawatts in just three weeks… across four suppliers: Nvidia, AMD, Oracle, and now Broadcom. It’s less a supply chain and more a polyamorous financial loop where everyone’s both customer and investor. Broadcom CEO Hock Tan said the quiet part out loud: “If you do your own chips, you control your destiny.” That’s the entire AI trade in one sentence… control compute or get priced out of intelligence itself.

Altman’s team even used its own models to help design the chips, automating human engineers out of the process they’re still pretending to lead. “We’ve been able to get massive area reductions,” said OpenAI president Greg Brockman, as if the sentence “AI helped us build the chips that run AI” shouldn’t terrify economists. 

(Source: Giphy) 

And yet, here’s the math nobody is doing: one gigawatt of data center capacity costs about $50 billion, with roughly $35 billion of that going to chips. Multiply that by ten, and you get a price tag north of half a trillion dollars… for one company that still doesn’t turn a profit. But the market doesn’t care. Broadcom’s up, AMD’s up, Nvidia’s up. The only thing more inflated than the chips is the belief that this scale is sustainable.

Altman called the 10-gigawatt build “just the beginning.” He said that even if they had 30 gigawatts of compute today, “the world would absorb it fast.” Which is true… but the scary part is that OpenAI isn’t just buying chips to be absorbed… it’s  nationalizing them. Quietly. Piece by piece. Every partnership now doubles as an acquisition by other means. If Nvidia was the oxygen of the AI boom, Broadcom is the blood vessel. OpenAI’s trying to own the circulatory system before anyone notices the heart can’t keep up. Meaning, if I were a betting man (which I’m not), I fully expect this whole charade to get even wilder going forward. So place your bets accordingly, friends. Until next time… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.