Broadcom won't build OpenAI's custom chip unless Microsoft commits to 40% of supply

Broadcom has refused to finance production of OpenAI's custom AI chip without a Microsoft commitment to buy 40% of output. Phase one alone costs roughly $18B; OpenAI manager Sachin Katti called the dependency 'financially unattractive' internally. Separately, SoftBank cut an OpenAI-backed loan from $10B to $6B as lenders balked at private valuations, and CFO Sarah Friar confirmed ~$50B in 2026 compute spend.