OpenAI (OPENAI) is reportedly working with Softbank’s (OTCPK:SFTBY) (OTCPK:SFTBF) subsidiary Arm (NASDAQ:ARM) to develop a central processing unit chip, as part of its larger deal with Broadcom (NASDAQ:AVGO).
The British chip designer’s shares were extending their gains on Tuesday morning, climbing more than 4% to $179.52. On Monday, Arm’s shares closed 11.07% higher at $171.94, after The Information first published the report.
According to the report, the central processing unit chip is designed to work with OpenAI’s AI server chip, which it is co-designing with Broadcom. Arm also hopes that OpenAI will adopt the CPU chip alongside other AI chips it plans to deploy from Nvidia and AMD.
Arm declined to comment on queries sent by Seeking Alpha, while questions sent to OpenAI did not receive an immediate response.
On Monday, the Microsoft-backed firm announced a collaboration with Broadcom for 10 gigawatts of custom AI accelerators. OpenAI will design the accelerators and systems, which will be developed and deployed in partnership with the semiconductor giant. The financial details of the deal were not disclosed.
Softbank, which owns nearly 90% of Arm, has also invested heavily in the ChatGPT maker. The Japanese conglomerate has reportedly been securing a margin loan backed by its Arm shares to finance further investments in OpenAI. Softbank is helping OpenAI develop and finance its ambitious data center plan.