Look at the stock of Broadcom. Go this morning. This big time maker of chips networking equipment and infrastructure software announced a major deal with OpenAI. And the stock shot up nearly 10% in response.
Jim Cramer
Hock Tan
There is a real hard business case for what we're doing, investing and enabling selected customers to run their large language models. Compute capacity demand is very high and growing fast.
Many companies are guessing which AI companies will succeed. How many can do customized silicon at scale?
Jim Cramer
Hock Tan
We've been working with Google for 8 years on custom AI accelerators and selected a group of seven key players creating foundation models. Four are our real customers with production purchase orders.
You usually only do purchase orders, so with OpenAI being private, can you assure us they are a viable partner?
Jim Cramer
Hock Tan
OpenAI is at the forefront of foundation models, privately valued over $500 billion, with strong revenue growth. The wave of generative AI is a secular phenomenon creating intelligence through compute capacity doubling every year.
You reference 2030 and how exciting this AI wave can be?
Jim Cramer
Hock Tan
It’s a critical utility for society, not cyclical but secular. Generative AI will grow the knowledge-based part of global GDP from 30% to 40%, about $10 trillion a year. This augments human intelligence significantly.