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Broadcom-OpenAI deal expected to be cheaper than current GPU options

Sam Altman didn’t set out to compete with Nvidia.

OpenAI began with a simple bet that better ideas, not better infrastructure, would unlock artificial general intelligence. But that view shifted years ago, as Altman realized that more compute, or processing power, meant more capability — and ultimately, more dominance.

On Monday morning, he unveiled his latest blockbuster deal, one that moves OpenAI squarely into the chipmaking business and further into competition with the hyperscalers.

OpenAI is partnering with Broadcom to co-develop racks of custom AI accelerators, purpose-built for its own models. It’s a big shift for a company that once believed intelligence would come from smarter algorithms, not bigger machines.

“In 2017, the thing that we found was that we were getting the best results out of scale,” the OpenAI CEO said in a company podcast on Monday. “It wasn’t something we set out to prove. It was something we really discovered empirically because of everything else that didn’t work nearly as well.”

That insight — that the key was scale, not cleverness — fundamentally reshaped OpenAI.

Now, the company is expanding that logic even further, teaming up with Broadcom to design and deploy racks of custom silicon optimized for OpenAI’s workloads.

The deal gives OpenAI deeper control over its stack, from training frontier models to owning the infrastructure, distribution, and developer ecosystem that turns those models into lasting platforms.

Altman’s rapid series of deals and product launches is assembling a complete AI ecosystem, much like Apple did for smartphones and Microsoft did for PCs, with infrastructure, hardware, and developers at its core.

OpenAI expands hyperscaler ambitions with custom silicon, 10 GW Broadcom chip deal

Hardware

Through its partnership with Broadcom, OpenAI is co-developing custom AI accelerators, optimized for inference and tailored specifically to its own models.

Unlike Nvidia and AMD chips, which are designed for broader commercial use, the new silicon is built for vertically integrated systems, tightly coupling compute, memory, and networking into full rack-level infrastructure. OpenAI plans to begin deploying them in late 2026.

The Broadcom deal is similar to what Apple did with its M-series chips: control the semiconductors, control the experience.

But OpenAI is going even further and engineering every layer of the hardware stack, not just the chip.

The Broadcom systems are built on its Ethernet stack and designed to accelerate OpenAI’s core workloads, giving the company a physical advantage that’s deeply entangled with its software edge.

At the same time, OpenAI is pushing into consumer hardware, a rare move for a model-first company.

Its $6.4 billion all-stock acquisition of Jony Ive‘s startup, io, brought the legendary Apple designer into its inner circle. It was a sign that OpenAI doesn’t just want to power AI experiences, it wants to own them.

Ive and his team are exploring a new class of AI-native devices designed to reshape how people interact with intelligence, moving beyond screens and keyboards toward more intuitive, engaging experiences.

Reports of early concepts include a screenless, wearable device that uses voice input and subtle haptics, envisioned more as an ambient companion than a traditional gadget.

OpenAI’s twin bet on custom silicon and emotionally resonant consumer hardware adds two more powerful branches over which it has direct control.

Anthropic, OpenAI rivalry goes global

Blockbuster deals

OpenAI’s chips, datacenters and power fold into one coordinated campaign called Stargate that provides the physical backbone of AI.

In the past three weeks, that campaign has gone into overdrive with several major deals:

Taken together, it is OpenAI’s push to root the future of AI in infrastructure it can call its own.

“We are able to think from etching the transistors all the way up to the token that comes out when you ask ChatGPT a question, and design the whole system,” Altman said. “We can get huge efficiency gains, and that will lead to much better performance, faster models, cheaper models — all of that.”

Whether or not OpenAI can deliver on every promise, the scale and speed of Stargate is already reshaping the market, adding hundreds of billions in market cap for its partners, and establishing OpenAI as the de facto market leader in AI infrastructure.

None of its rivals appears able to match the pace or ambition. And that perception alone is proving a powerful advantage.

Developers

OpenAI and AMD unveil 6GW partnership: Here's what to know

Until now, most companies treated OpenAI as a tool in their stack. But with new features for publishing, monetizing, and deploying apps directly inside ChatGPT, OpenAI is pushing for tighter integration — and making it harder for developers to walk away.

Microsoft CEO Satya Nadella pursued a similar strategy after taking over from Steve Ballmer.

To build trust with developers, Nadella leaned into open source and acquired GitHub for $7.5 billion, a move that signaled Microsoft’s return to the developer community.

GitHub later became the launchpad for tools like Copilot, anchoring Microsoft back at the center of the modern developer stack.

OpenAI and all the big hyperscalers are going for vertical integration,” said Ben van Roo, CEO of Legion, a startup building secure agent frameworks for defense and intelligence use cases.

“Use our models and our compute, and build the next-gen agents and workflows with our tools. The market is massive. We’re talking about replaying SaaS, big systems of record, and literally part of the labor force,” said van Roo.

SaaS stands for software as a service, a group of companies specializing in enterprise software and services, of which Salesforce, Oracle and Adobe are part.

Legion’s strategy is to stay model-agnostic and focus on secure, interoperable agentic workflows that span multiple systems. The company is already deploying inside classified Department of Defense environments and embedding across platforms like NetSuite and Salesforce.

But that same shift also introduces risk for the model makers.

Agents and workflows make some of the massive LLMs both powerful and maybe less necessary,” he noted. “You can build reasoning agents with smaller and specific workflows without GPT-5.”

The tools and agents built with leading LLMs have the potential to replace legacy software products from companies like Microsoft and Salesforce.

That’s why OpenAI is racing to build the infrastructure around its models. It’s not just to make them more powerful, but harder to replace.

The real bet isn’t that the best model will win, but that the company with the most complete developer loop will define the next platform era.

And that’s the vision for ChatGPT now: Not just a chatbot, but an operating system for AI.

OpenAI and Broadcom sign 10GW deal

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Waymo poaches top Tesla audio engineer

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Waymo poaches top Tesla audio engineer

Waymo has poached a top Tesla audio engineer to lead the In-car Audio and Infotainment experience inside its autonomous vehicles.

Tesla and Waymo have a sort of rivalry as they are both working toward deploying autonomous driving systems.

Earlier this year, there was a little back and forth about having the biggest service area in Austin, even though the competition was sort of unfair since Waymo has been opreating a true level 4 autonmous driving system in the Texas capital while Tesla’s Robotaxi system is still being supervised by employees inside the vehicles.

But the competition is also for talent.

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Last year, Waymo hired Tesla’s head of vehicle programs and the company has continued to hire some vehicle engineers and technicians since.

Now, we learn that Waymo has poached ­Nikhil ­Satish, a top audio engineer from Tesla.

He announced on LinkedIn last week:

I’m happy to share that I’m starting a new position as Technical Leader of Audio Systems at Waymo!

Satish already had an extensive career in audio engineering with NVIDIA and Amazon before joining Tesla in 2021.

At Tesla, Satish led the audio engineering of the Cybertruck, which has been praised for its audio system.

The company even noted it yesterday:

More recently, he also led audio engineering on Tesla’s semi truck and humanoid robot programs, according to his LinkedIn profile.

Now, he will be the technical lead for in-car audio and infotainment experience at Waymo.

While Waymo’s core technology is autonomous driving, the audio and video experience is expected to be increasingly important as passengers can put their attention toward other things than driving.

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GM’s feeling the heat after the US pulled the plug on the $7,500 EV tax credit

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GM's feeling the heat after the US pulled the plug on the ,500 EV tax credit

GM is suddenly shaking up electric vehicle production plans after issuing a stark warning. The automaker warned that new US policy changes, including killing off the $7,500 EV tax credit, will cost it at least $1.6 billion.

GM shifts plans as the EV tax credit expires

Although GM set another record by delivering 66,501 electric vehicles in the third quarter, it’s bracing for a much different market over the next few months.

In an SEC filing on Tuesday, GM said that “following recent US Government changes, including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow.”

Although it didn’t reveal specifics, GM said the policy changes “have caused us to reassess our EV capacity and manufacturing footprint.”

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The changes do not impact Chevy, GMC, and Cadillac electric vehicles currently in production, and GM expects they will remain available for buyers.

The “strategic realignment” will cost it at least $1.6 billion. GM said $1.2 billion of the charges will be non-cash as it adjusts EV capacity. The other $400 million is primarily due to contract cancellation fees and “commercial settlements associated with EV-related investments,” according to GM’s filing. That will have a cash impact.

Chevy-Equinox-EV-tax-credit
2025 Chevy Equinox EV LT (Source: GM)

GM is also reassessing investments in battery manufacturing. The company said discussions are still ongoing, adding that it’s “reasonably possible” it will absorb additional costs due to the changes.

The charges, which were approved by the board on October 7, will be included in GM’s third-quarter earnings. We will learn more when GM reports Q3 earnings results next week on October 21.

Cadillac-Optiq-EV-tax-credit
Cadillac Optiq EV (Source: Cadillac)

Although GM and crosstown rival Ford were planning to launch programs designed to extend the $7,500 EV credit, both have since abandoned those plans. Instead, GM will provide about $6,000 of its own cash for a limited time to support EV leasing.

Electrek’s Take

Through the first nine months of 2025, GM sold 144,688 EVs, more than double the amount it sold in the same period last year.

The Chevy Equinox EV has been GM’s biggest hit, ranking as the third best-selling EV behind the Tesla Model Y and Model 3. Cadillac was the leading EV luxury brand in Q3 with three of the top 10 most popular models in the segment: the Lyriq (#2), Optiq (#5), and Vistiq (#6).

GMC is on pace for its best year ever, with the new Sierra EV rolling out and demand for the Hummer EV picking up. With the $7,500 EV tax credit now expired, GM, like most automakers, is preparing for slower EV adoption in the US.

The policy changes, including dropping the $7,500 tax credit, will only put the US further behind China, South Korea, and others leading the global push for electric vehicles.

We should learn more about GM’s updated EV production plans next week when it reports Q3 earnings on October 21. Check back for updates.

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Flying electric boat to showcase cutting commute times in half in Washington D.C.

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Flying electric boat to showcase cutting commute times in half in Washington D.C.

What if your morning commute didn’t involve gridlock on the 395 or the Orange Line crawl, but instead meant silently flying over the Potomac River at 30 knots? That’s exactly what Stockholm-based Candela is bringing to Washington D.C. this week with the U.S. demo debut of its flying electric boats.

While it doesn’t appear to be a permanent route nor make use of the company’s latest flagship commercial vessel, the P-12 shuttle, the demonstration set up near the Swedish embassy will illustrate just how effective the alternative commuting method truly is.

Starting October 17th, Candela will be showcasing media test rides on the Potomac using its C-8 flying vessel to demonstrate how its revolutionary electric hydrofoil ferry – the Candela P-12 – could transform city commutes. With wings hidden beneath the water and a high-tech flight controller regulating the ride, the P-12 lifts out of the water and literally flies above the surface, reducing drag by 80% and gliding without creating a wake.

The demonstration underscores how this level of speed and efficiency could actually change how people move around the D.C. metro area. A typical commute from Georgetown to Reagan Airport? By car, that’s around 20 minutes. On public transit, 37. On the P-12? Just six minutes. Similarly, a water ride from Alexandria to The Wharf would be a quick and quiet 10-minute journey – likely faster than your rideshare app can even find a driver during rush hour.

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The Candela P-12 is more than just a speedy commuter; it’s also quiet, clean, and surprisingly comfortable. Its computer-controlled hydrofoils make for a ride that’s smooth enough to prevent seasickness, and the onboard C-POD electric motor hums along with no noise or vibration. With no slamming into waves and no diesel fumes to choke on, the whole thing feels more like riding a luxury train than a boat.

And while this might sound like the kind of futuristic tech you’ll hear about once and never again, Candela is already proving this model works. In Stockholm, the P-12 has already been integrated into the city’s public transport system, where it’s cut some routes’ travel times in half and delivered a quieter, cheaper, and greener commute. Similar projects are in the works for Lake Tahoe, Mumbai, Thailand, and Saudi Arabia – with more than 40 boats already on order, making it the best-selling electric passenger vessel in the world.

Candela says operating costs are about 60% lower than diesel-powered vessels, which puts them in line with land-based mass transit options like buses. In cities like D.C., where shoreline erosion and speed restrictions limit traditional ferries, the P-12’s wake-free cruising means it can get exemptions and run at high speeds even in no-wake zones. That opens up a whole new layer of transport.

“We’re not merely replacing diesel ferries — we’re enabling a new layer of transport by utilizing the underused waterways,” said Gustav Hasselskog, Candela’s founder and CEO. “We’re already in discussions with several U.S. companies that see the potential of using flying electric vessels to bypass congestion.”

The Washington D.C. demo is timed to coincide with the Swedish Green Transition Summit, a forum focused on sustainable innovation, and will run through October 23rd from a launch site adjacent to the Swedish Embassy. It’s part marketing, part diplomacy, and part real-world proof of concept that urban waterborne transit doesn’t have to be slow, loud, or dirty.

For a city surrounded by rivers and plagued by congestion, Candela’s pitch is clear: don’t pave more roads – just fly over the water. If the P-12 delivers in D.C. the way it has in Sweden, this could be the start of an entirely new commute for many more U.S. cities.

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