Broadcom's CEO Hock Tan predicts significant growth in the AI chip market, with the company's valuation surpassing $1 trillion for the first time. By 2027, Broadcom expects a serviceable addressable market of $60–90 billion in AI-related products and networks. The company is also benefiting from its $69 billion acquisition of VMware, which contributed $3.85 billion in revenue last quarter.

Broadcom CEO Hock Tan predicts a significant expansion in the AI chip market, with the company's valuation surpassing $1 trillion for the first time. He expects the serviceable addressable market for AI to reach between $60 billion and $90 billion by 2027, driven by substantial demand from major customers.

Broadcom forecasts the AI chip market will reach $60 billion to $90 billion by 2027, driven by rising demand for AI technologies. The company's recent growth in AI-related revenue is attributed to strong sales of its XPU and Ethernet chips. However, analysts caution about potential shifts in customer spending and chip design trends.

Broadcom has forecasted first-quarter revenue that surpasses Wall Street estimates, driven by a significant increase in demand for AI chips. The company's CEO anticipates substantial revenue opportunities from AI technologies in the coming years, suggesting a strong growth trajectory in this sector.

**Summary** 1. OpenAI and Broadcom are working on a custom inference chip to reduce operating costs. 2. The collaboration aims to enhance AI efficiency through hardware-software optimization. 3. Broadcom’s stock got a slight bump after the news broke, with AI silicon sales expected to hit $12 billion. 4. OpenAI envisions massive AI-powered data centers using these custom chips. 5. Although OpenAI won’t likely sell hardware, they may deploy these chips at the network edge.