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Oct 14, 2025
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Happy Tuesday! OpenAI announces a chip design deal with Broadcom. Cursor-maker Anysphere is in talks to raise $1 billion at a $27 billion valuation. Amazon's custom chip now powers most of its key AI cloud services.
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OpenAI is to design its own AI chips in collaboration with Broadcom, the two companies announced on Monday morning, the latest in a succession of announcements by OpenAI to assure itself of more computing capacity. The agreement with Broadcom follows deals announced in the past two weeks with Nvidia and AMD for supply of those companies’ chips. But in this deal, OpenAI is designing its own chips. In today’s announcement, OpenAI said it “can embed what it’s learned from developing frontier models and products directly into the hardware.” The news confirms a
report in The Information in mid-2024 that the two companies were in talks about developing a new chip. In September, the Financial Times reported that OpenAI was the mystery customer CEO Hock Tan was referring to when he said Broadcom would make $10 billion next year on a new AI chip deal. But on Monday, in an interview on CNBC with OpenAI cofounder Greg Brockman, Broadcom President Charlie Kawwas implied that OpenAI was not the company behind that deal. “I would love to take a $10
billion [purchase order] from my good friend Greg. He has not given me that PO yet, so I hope that answers the question,” he said.
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Coatue Management and Accel have been in talks to make major investments in Anysphere, which makes popular coding assistant Cursor, according to two people with direct knowledge of the discussions. Anysphere is planning to raise at least $1 billion in new capital at a $27 billion valuation before the investment, according to one of those people. The deal, if closed, would be Coatue Management’s first known investment into the coding assistant startup. Accel, which has also backed Swedish coding startup Lovable, first invested in Anysphere at a $9.9 billion valuation in June. The deal would continue Accel’s strategy of doubling down on some of its growth-stage bets, as it has done with data labeling startup Scale AI and cloud cybersecurity firm Cyera. Details of the financing haven’t previously been reported. The
Information was first to report that investors have offered to finance Anysphere at roughly three times the valuation in its last round. The new funding would add to the approximately $800 million Anysphere has on its balance sheet, according to one of the people. The firm has been training its own models to power its assistant, driving up costs.
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More than half of a key Amazon Web Services cloud service for accessing artificial intelligence is running on the company’s custom-designed AI chips, said Julia White, AWS’s chief marketing officer, in an interview on The Information’s TITV. Amazon executives haven’t previously shared such details about usage of the custom AI chips, Trainium, in running the Bedrock cloud service, which also runs on graphics processing units from Nvidia. Cloud customers use Bedrock to access AI models from Anthropic and other providers. White’s revelation is significant because it shows the extent to which Amazon is relying on in-house technology to potentially get better gross profit margins from AI, as Trainium chips are less expensive than Nvidia GPUs. (Trainium isn’t a GPU but is designed to speed up AI model training
and inference). AWS also sells Trainium-powered cloud servers at a steep discount to Nvidia chip-powered cloud servers, as we’ve reported.
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Apple is slightly tweaking the name of its streaming media service by shedding the plus-symbol at the end of its previous name, Apple TV+. The company tucked the news away at the end of a press release announcing that its blockbuster sports movie “F1 The Movie” would arrive on the streaming service December 12th. “Apple TV+ is now simply Apple TV, with a vibrant new identity,” the press release reads. The rebranding could cause some
confusion. The Apple TV service now shares a name with the company’s streaming media hardware, a low-selling product that is one of the minor parts of Apple’s product line. Apple infrequently releases new updates to the product, the last model of which came out in 2022. Although F1 performed well, making more than $629 million in global box office sales, the streaming service has been a money-loser in the company’s service portfolio. At the end of last year, Apple was losing $1 billion a year on the service, even with subscribers growing to 45 million, The Information previously reported. The company trimmed Apple TV’s budget
around $500 million last year as executives upped scrutiny of spending.
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JPMorgan Chase will invest $10 billion in mostly US-based tech companies working in areas aligned with strategic government interests. The investments are part of a broader pledge by the bank to facilitate $1.5 trillion of transactions in areas including domestic manufacturing and artificial intelligence. The bank said it’s targeting four sectors for investment–supply chain and advanced manufacturing; defense and aerospace; energy independence and resilience; and frontier and strategic technologies. The pledge to facilitate or finance $1.5 trillion of deals in those areas is a 50% increase from the bank’s previous plans, it said. JPMorgan CEO Jamie Dimon twice pointed to critical minerals as an area of focus in a Monday statement. The bank recently worked with MP Materials on a deal with the Department of Defense
to increase domestic production of rare earth magnets used in everything from iPhones to fighter jets.
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Data startup Fivetran will merge with data management company dbt Labs in an all-stock deal, the companies announced Monday, confirming an earlier | | | |
