Semiconductors

OpenAI and Broadcom unite to deploy 10 gigawatts of AI accelerators

The US firm, OpenAI, has announced a multi-year collaboration with Broadcom to design and deploy 10 gigawatts of custom AI accelerators.

The partnership will combine OpenAI’s chip design expertise with Broadcom’s networking and Ethernet technologies to create large-scale AI infrastructure. The deployment is expected to begin in the second half of 2026 and be completed by the end of 2029.

A collaboration that enables OpenAI to integrate insights gained from its frontier models directly into the hardware, enhancing efficiency and performance.

Broadcom will develop racks of AI accelerators and networking systems across OpenAI’s data centres and those of its partners. The initiative is expected to meet growing global demand for advanced AI computation.

Executives from both companies described the partnership as a significant step toward the next generation of AI infrastructure. OpenAI CEO Sam Altman said it would help deliver the computing capacity needed to realise the benefits of AI for people and businesses worldwide.

Broadcom CEO Hock Tan called the collaboration a milestone in the industry’s pursuit of more capable and scalable AI systems.

The agreement strengthens Broadcom’s position in AI networking and underlines OpenAI’s move toward greater control of its technological ecosystem. By developing its own accelerators, OpenAI aims to boost innovation while advancing its mission to ensure artificial general intelligence benefits humanity.

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Nvidia DGX Spark launches as the world’s smallest AI supercomputer

Nvidia has launched the DGX Spark, described as the world’s smallest AI supercomputer.

Designed for developers and smaller enterprises, the Spark offers data centre-level performance without the need for costly AI server infrastructure or cloud rentals. It features Nvidia’s GB10 Grace Blackwell superchip, ConnectX-7 networking, and the company’s complete AI software stack.

The system, co-developed with ASUS and Dell, can support up to 128GB of memory, enabling users to train and run substantial AI models locally.

Nvidia CEO Jensen Huang compared Spark’s mission to the 2016 DGX-1, which he delivered to Elon Musk’s OpenAI, marking the start of the AI revolution. The new Spark, he said, aims to place supercomputing power directly in the hands of every developer.

Running on Nvidia’s Linux-based DGX OS, the Spark is built for AI model creation rather than general computing or gaming. Two units can be connected to handle models with up to 405 billion parameters.

The device complements Nvidia’s DGX Station, powered by the more advanced GB300 Grace Blackwell Ultra chip.

Nvidia continues to dominate the AI chip industry through its powerful hardware and CUDA platform, securing multi-billion-dollar deals with companies such as OpenAI, Google, Meta, Microsoft, and Amazon. The DGX Spark reinforces its position by expanding access to AI computing at the desktop level.

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Netherlands safeguards economic security through Nexperia intervention

The Dutch Minister of Economic Affairs has invoked the Goods Availability Act in response to serious governance issues at semiconductor manufacturer Nexperia.

The measure, announced on 30 September 2025, seeks to ensure the continued availability of the company’s products in the event of an emergency. Nexperia, headquartered in Nijmegen, will be allowed to maintain its normal production activities.

A decision that follows recent indications of significant management deficiencies and actions within Nexperia that could affect the safeguarding of vital technological knowledge and capacity in the Netherlands and across Europe.

Authorities view these capabilities as essential for economic security, as Nexperia supplies chips for the automotive sector and consumer electronics industries.

Under the order, the Minister of Economic Affairs may block or reverse company decisions considered harmful to Nexperia’s long-term stability or to the preservation of Europe’s semiconductor value chain.

The Netherlands government described the use of the Goods Availability Act as exceptional, citing the urgency and scale of the governance concerns.

Officials emphasised that the action applies only to Nexperia and does not target other companies, sectors, or countries. The decision may be contested through the courts.

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Beijing tightens grip on rare earth exports

China has announced new restrictions on rare earth and permanent magnet exports, significantly escalating its control over critical materials essential for advanced technologies and defence production. The move, revealed ahead of President Donald Trump’s expected meeting with President Xi Jinping, introduces the most rigid export controls yet.

For the first time, Beijing will require foreign companies to obtain approval to export magnets that contain even minimal Chinese-sourced materials or were made with Chinese technology, effectively extending its influence across the global supply chain.

The restrictions could have profound implications for the US defence and semiconductor industries. Rare earth elements are indispensable for producing fighter jets, submarines, missiles, and other advanced systems.

Beginning 1 December 2025, any company tied to foreign militaries, particularly the US, will likely be denied export licenses, while applications for high-tech uses, such as next-generation semiconductors, will face case-by-case reviews. These measures grant Chinese authorities broad discretion to delay or deny exports, tightening their strategic control at a time when Washington already struggles to boost domestic production.

Beijing’s announcement also limits Chinese nationals from participating in overseas rare earth projects without government authorisation, aiming to block the transfer of technical know-how abroad. Analysts suggest the move serves both as a negotiation tactic ahead of renewed trade talks and as a continuation of China’s long-term strategy to weaponise its dominance in the rare earth sector, which supplies over 90% of the world’s magnet manufacturing.

Meanwhile, the US is racing to build resilience. Noveon Magnetics and Lynas Rare Earths are partnering to establish a domestic magnet supply chain, while the Department of War has invested heavily in MP Materials to expand rare earth mining and processing capacity.

Yet experts warn that developing these capabilities will take years, leaving China with significant leverage over global supply chains critical to US national security.

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Intel unveils next-gen 18A processors with high performance and efficiency

Intel has revealed its next-gen client and server processors using Intel 18A, the most advanced US-made semiconductor node. The new Intel Core Ultra 3 (Panther Lake) and Xeon 6+ (Clearwater Forest) promise major performance and efficiency gains, with production already underway at Fab 52 in Arizona.

Panther Lake introduces a scalable multi-chiplet architecture for consumer and commercial AI PCs, gaming devices, and edge applications. It offers over 50% faster CPU and GPU performance, up to 180 TOPS for AI, and new robotics AI capabilities.

High-volume production begins later this year, with broad availability expected in January 2026.

Clearwater Forest is designed for hyperscale data centres, cloud providers, and telcos. Built entirely on Intel 18A, the Xeon 6+ processor offers up to 288 E-cores, a 17% IPC uplift, and improved density, throughput, and power efficiency.

It is set to launch in the first half of 2026.

Intel 18A underpins at least three upcoming generations of client and server products, with key innovations including RibbonFET transistors, PowerVia backside power delivery, and Foveros advanced packaging.

Fab 52 further strengthens the company’s US manufacturing leadership, supporting domestic production and strategic supply chain resilience.

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Microsoft boosts AI leadership with NVIDIA GB300 NVL72 supercomputer

Microsoft Azure has launched the world’s first NVIDIA GB300 NVL72 supercomputing cluster, explicitly designed for OpenAI’s large-scale AI workloads.

The new NDv6 GB300 VM series integrates over 4,600 NVIDIA Blackwell Ultra GPUs, representing a significant step forward in US AI infrastructure and innovation leadership.

Each rack-scale system combines 72 GPUs and 36 Grace CPUs, offering 37 terabytes of fast memory and 1.44 exaflops of FP4 performance.

A configuration that supports complex reasoning and multimodal AI systems, achieving up to five times the throughput of the previous NVIDIA Hopper architecture in MLPerf benchmarks.

The cluster is built on NVIDIA’s Quantum-X800 InfiniBand network, delivering 800 Gb/s of bandwidth per GPU for unified, high-speed performance.

Microsoft and NVIDIA’s long-standing collaboration has enabled a system capable of powering trillion-parameter models, positioning Azure at the forefront of the next generation of AI training and deployment.

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US greenlights Nvidia chip exports to UAE under new AI pact

The US has approved its first export licences for Nvidia’s advanced AI chips destined for the United Arab Emirates, marking a concrete step in the bilateral AI partnership announced earlier in 2025.

These licences come under the oversight of the US Commerce Department’s Bureau of Industry and Security, aligned with a formal agreement between the two nations signed in May.

In return, the UAE has committed to investing in the United States, making this a two-way deal. The licences do not cover every project yet: some entities, such as the AI firm G42, are currently excluded from the approved shipments.

The UAE sees the move as crucial to its AI push under Vision 2031, particularly for funding data centre expansion and advancing research in robotics and intelligent systems. Nvidia already collaborates with Abu Dhabi’s Technology Innovation Institute (TII) in a joint AI and robotics lab.

Challenges remain. Some US officials cite national security risks, especially given the UAE’s ties and potential technology pathways to third countries.

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Bulgaria eyes AI gigafactory partnership with IBM

Bulgaria is considering building an AI gigafactory in partnership with IBM and the European Commission, Prime Minister Rosen Zhelyazkov announced after meeting with IBM executives in Sofia. The project aims to attract large-scale high-tech investment and strengthen Europe’s AI infrastructure.

The proposed facility would feature over 100,000 advanced GPU chips and require up to 500 megawatts of power. The initial phase alone is expected to need around 70 megawatts, highlighting the scale of the planned operation.

Funding could come through a public-private partnership, with the European Commission covering up to 17 percent of capital costs and EU member states contributing additional support for this Bulgarian project.

IBM is considered a strategic technology partner, bringing expertise in cloud computing, cybersecurity, and AI systems. The first gigafactories across Europe are expected to begin operations between 2027 and 2028, aligning with the EU’s plan to mobilise €200 billion for AI development.

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OpenAI and AMD strike 6GW GPU deal to power next-generation AI infrastructure

AMD and OpenAI have announced a strategic partnership to deploy up to six gigawatts of AMD GPUs, marking one of the largest AI compute collaborations.

The multi-year agreement will begin with the rollout of one gigawatt of AMD Instinct MI450 GPUs in the second half of 2026, with further deployments planned across future AMD generations.

A deal that deepens a long-standing relationship between the two companies began with AMD’s MI300X and MI350X series.

OpenAI will adopt AMD as a core strategic compute partner, integrating its technology into large-scale AI systems and jointly optimising product roadmaps to support next-generation AI workloads.

To strengthen alignment, AMD has issued OpenAI a warrant for up to 160 million shares, with tranches vesting as the partnership achieves deployment and share-price milestones. AMD expects the collaboration to deliver tens of billions in revenue and boost its non-GAAP earnings per share.

AMD CEO Dr Lisa Su called the deal ‘a true win-win’ for both companies, while OpenAI’s Sam Altman said the partnership will ‘accelerate progress and bring advanced AI benefits to everyone faster’.

The collaboration positions AMD as a leading hardware supplier in the race to build global-scale AI infrastructure.

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Bezos predicts gigantic gains from the current AI investment bubble

Jeff Bezos has acknowledged that an ‘AI bubble’ is underway but believes its long-term impact will be overwhelmingly positive.

Speaking at Italian Tech Week in Turin, the Amazon founder described it as an ‘industrial bubble’ rather than a purely financial.

He argued that the intense competition and heavy investment will ultimately leave society better off, even if many projects fail. ‘When the dust settles and you see who the winners are, societies benefit from those investors,’ he said, adding that the benefits of AI will be ‘gigantic’.

Bezos’s comments come amid surging spending by Big Tech on AI chips and data centres. Citigroup forecasts that investment will exceed $2.8 trillion by 2029.

OpenAI, Meta, Microsoft, Google and others are pouring billions into infrastructure, with projects like OpenAI’s $500 billion Stargate initiative and Meta’s $29 billion capital raise for AI data centres.

Industry leaders, including Sam Altman of OpenAI, warned of an AI bubble. Yet many argue that, unlike the dot-com era, today’s market is anchored by Nvidia and OpenAI, whose products form the backbone of AI development.

The challenge for tech giants will be finding ways to recover vast investments while sustaining rapid growth.

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