Squawk on the Street Markets Rebound After Sell-Off, OpenAI and Broadcom Presidents on Multibillion-Dollar Deal 10/13/25
10 snips
Oct 13, 2025 Markets are bouncing back after a recent sell-off, with discussions on how trade tensions with China are impacting investor sentiment. In breaking news, OpenAI and Broadcom have announced a groundbreaking partnership to develop 10 gigawatts of custom AI accelerators starting in 2026. The presidents of both companies shared insights on the multibillion-dollar deal and the critical need for diverse hardware partnerships in AI. The market is reacting positively, with tech stocks gaining momentum following the announcement.
AI Snips
Chapters
Transcript
Episode notes
Custom Chips To Cut AI Costs
- OpenAI and Broadcom will co-develop custom AI accelerators and systems to optimize model performance and cost.
- The goal is faster models and lower cost per token by integrating model learnings into hardware.
Power Is The Gating Constraint
- Building AI infrastructure requires vast power: 10 gigawatts equals enormous household-level consumption.
- Power availability is the gating factor for scaling AI compute at the required pace.
China Frames Rare Earth Curbs As Retaliation
- China defends rare earth curbs as countermeasures and frames them as responses to U.S. restrictions.
- Beijing signals both pressure tactics and attempts to soften negative global reactions.