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Why Anthropic's Custom Chip Plans Could Benefit Broadcom

Submitted by Leo Miller. First Published: 4/17/2026.

Large language model developer Anthropic is one of the top names in the artificial intelligence (AI) race and is growing rapidly. From the end of 2025 to early April, Anthropic says its annual revenue run rate increased by more than three times, from $9 billion to over $30 billion.

To support that growth, the company is partnering with semiconductor giant Broadcom (NASDAQ: AVGO). Anthropic plans to access 3.5 gigawatts of Tensor Processing Unit (TPU)-based AI compute through Broadcom over the coming years — the same class of chips Broadcom co-developed with Google parent company Alphabet (NASDAQ: GOOGL).

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However, reports have emerged that Anthropic is exploring the development of its “own” AI chips. For investors, it’s useful to parse what that actually means — and why Anthropic building its own chips could, paradoxically, be another significant opportunity for Broadcom.

AI Chip Development: Why Anthropic’s Exploration Could Include Broadcom

As first reported by Reuters, Anthropic is “exploring the possibility of designing its own chip,” citing three unnamed sources. The report emphasizes these discussions are early — Anthropic may ultimately decide to buy chips from existing suppliers rather than design its own, and it has not yet assembled a dedicated team for such a project.

If Anthropic does pursue custom chips, the implications for Broadcom could be meaningful. Hearing that Anthropic might build its “own” chips could initially alarm investors who assume complete independence from companies like Broadcom. But history suggests that “building your own” often means partnering with semiconductor specialists, not going it entirely alone.

Consider the TPU: many view it as Google’s “own” chip, yet Google has partnered with Broadcom to develop that technology for roughly a decade. Meta Platforms (NASDAQ: META) similarly partners with Broadcom on its Meta Training and Inference Accelerator, and Amazon.com (NASDAQ: AMZN) worked with Marvell Technology (NASDAQ: MRVL) on its Trainium chips.

The pattern is clear: even the largest, best-capitalized tech firms lean on semiconductor experts for chip design and engineering. Despite Anthropic’s rapid growth, it is unlikely to outmatch the resources of the established tech giants. So if those companies partner with semiconductor stalwarts, Anthropic is more likely to follow suit — and a Broadcom partnership could produce considerable upside for Broadcom.

Expanding Beyond TPUs? Why Broadcom Could Benefit

Anthropic is currently purchasing TPUs, but a partnership to co-develop bespoke chips with Broadcom would likely be even more attractive to the chipmaker. Custom engineering work typically commands higher margins than reselling standardized TPUs, so Broadcom could earn a more lucrative revenue stream from a bespoke deal.

Margins might also improve if Google is not involved. If the TPU arrangement includes revenue-sharing between Broadcom and Google, a direct Broadcom–Anthropic agreement would remove that split and could allow more value to flow to Broadcom. The exact financial structure of the TPU deal is not public, however, so quantifying this benefit is difficult.

Moreover, co-developed chips usually come with multi-year commitments. While Broadcom already has a multi-year TPU arrangement with Anthropic, a fully custom solution would likely deepen and extend the relationship — and with Anthropic among the fastest-growing AI firms, that would be strategically valuable for Broadcom.

That said, a Broadcom win is far from certain. Anthropic also maintains a strong relationship with Amazon: Amazon has invested $8 billion in Anthropic, and Anthropic uses Amazon’s Trainium chips in parts of its infrastructure. That creates a path for Marvell — Amazon’s custom chip partner — to win any bespoke Anthropic business instead.

Anthropic’s Potential Custom Chip: All Smoke, No Fire at This Point

It’s important to emphasize that Anthropic’s custom chip may never materialize. Still, if it does, the upside could accrue to Broadcom, Marvell, or other custom chip developers. Competition for any deal would extend beyond just those two firms.

Among potential partners, Broadcom and Marvell currently have the strongest ties to Anthropic. Broadcom’s link is especially direct, given announced partnerships; Marvell’s connection is more indirect, stemming from Anthropic’s relationship with Amazon.