WHY BROADCOM'S BET ON OPENAI IS A BIG RISK

Summary from the TLDR AI newsletter

Broadcom's deal to develop huge numbers of chips and computing systems with OpenAI is not a clear-cut win. OpenAI has recently signed multiple multi-billion-dollar deals to create data centers stocked with hundreds of thousands of chips. While the scale is remarkable, it is unclear how OpenAI will pay for all of it. OpenAI's revenue this year is expected to be around $13 billion, a large sum, but nowhere close enough to justify this level of spending. The company has told investors it won't be profitable until 2019.