During the third quarter of fiscal year 2026, Broadcom's President Chen Fuyang made a major forecast during the company's earnings call, stating that as competition for computing infrastructure among large AI model companies intensifies, Anthropic and OpenAI are expected to surpass Google to become the two largest core customers in Broadcom's AI-specific integrated circuit (ASIC) business. Specifically, Anthropic is expected to become Broadcom's largest XPU custom chip customer between 2027 and 2028, while OpenAI is anticipated to follow closely as the second-largest customer.
In the just-completed third quarter, Broadcom's AI semiconductor business showed strong growth, with revenue reaching $16.7 billion, representing a significant increase of 221% year-over-year and a 54% quarter-over-quarter growth. In terms of specific delivery progress, Broadcom delivered TPU v7 to both Anthropic and Google, and TPU v8i to Google. Additionally, the company officially began delivering its custom chip "Jalapeño" for OpenAI.
Looking ahead to the upcoming fourth quarter, Broadcom expects further acceleration, including faster delivery of TPU v7 to Anthropic, increased production speed for Google's TPU v8i, and the start of deliveries of MTIA series accelerators to Meta. Based on this, Broadcom forecasts AI revenue in the fourth quarter to rise to $21.7 billion, with an estimated year-over-year increase of 236%. The total AI revenue for the entire fiscal year 2026 is expected to reach $58 billion, a significant increase of 186% compared to the same period last year.
From a specific capacity deployment plan perspective, the investment pace of major players is accelerating across the board: Broadcom and Anthropic plan to deploy 1 GW of TPU v7 in 2026, expand to 5 GW of TPU v8i in 2027, and add another 10 GW in 2028. Meanwhile, OpenAI plans to deploy 1.3 GW of the "Jalapeño" chip in 2027, expanding the deployment to over 5 GW by 2028 (including the "Jalapeño" and its subsequent upgrades). Both parties are also steadily advancing the development of the third-generation XPU. In addition, Broadcom plans to deliver three generations of MTIA accelerators to Meta by the end of 2027, with the total deployment scale expected to reach 3 GW by the end of 2028.
With strong order reserves and clear capacity planning, Broadcom is confident about future market performance. The company expects its AI semiconductor business revenue to jump to approximately $115 billion in 2027 and $230 billion in 2028, achieving continuous doubling growth, with the upstream supply chain fully prepared.
