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35 percent of VMware workloads expected to migrate elsewhere by 2028

VMware will lose a significant chunk of business over the next three years, according to Gartner research VP Julia Palmer. Of course, some organizations have already abandoned VMware or are plotting partial or total migrations. Broadcom acquired the virtualization business in November 2023 and made sweeping changes that alienated many customers. The biggest concerns have been higher costs driven by a shift from perpetual licenses to subscriptions and the bundling of products into fewer, more ex

Report: OpenAI will launch its own AI chip next year

XH4D/iStock/Getty Images Plus via Getty Images Follow ZDNET: Add us as a preferred source on Google. ZDNET's key takeaways: OpenAI is building an in-house AI chip with Broadcom. The effort is likely the result of a partnership valued at $10 billion. Many AI companies are launching their own chipmaking operations. OpenAI is gearing up to launch its own AI chip, part of a broader industry effort to gain independence from third-party semiconductor companies. The ChatGPT-maker will start mass

VMware's in court again. Customer relationships rarely go this wrong

Opinion If you're a tech company marketing manager writing white papers, you'll love a juicy pull quote. That's where a client says something so lovely about you, you can pull it out of the main text and reprint it in a big font in the middle of the page. "VMware is essential for the operations of Tesco's business and its ability to supply groceries" is a great candidate from 2019. Broadcom's answer to VMware pricing outrage: You're using it wrong READ MORE Or it would be, if it wasn't follow

Broadcom stock jumps 9% on new $10 billion customer that analysts say is OpenAI

Analysts at Mizuho, Cantor Fitzgerald and KeyBanc all said they think AI startup OpenAI is the customer. The Financial Times reported on Thursday, citing people familiar with the partnership, that the two companies co-designed a chip that will hit the market next year. "One of these prospects released production orders to Broadcom, and we have accordingly characterized them as a qualified customer for XPUs," Tan said. He added that the order increased Broadcom's forecast for AI revenue next yea

Broadcom stock jumps 11% on new $10 billion customer that analysts say is OpenAI

Analysts at Mizuho, Cantor Fitzgerald and KeyBanc all said they think AI startup OpenAI is the customer. The Financial Times reported on Thursday, citing people familiar with the partnership, that the two companies co-designed a chip that will hit the market next year. "One of these prospects released production orders to Broadcom, and we have accordingly characterized them as a qualified customer for XPUs," Tan said. He added that the order increased Broadcom's forecast for AI revenue next yea

OpenAI links up with Broadcom to produce its own AI chips

OpenAI is set to produce its own artificial intelligence chip for the first time next year, as the ChatGPT maker attempts to address insatiable demand for computing power and reduce its reliance on chip giant Nvidia. The chip, co-designed with US semiconductor giant Broadcom, would ship next year, according to multiple people familiar with the partnership. Broadcom’s chief executive Hock Tan on Thursday referred to a mystery new customer committing to $10 billion in orders. OpenAI’s move foll

Broadcom stock jumps 15% on new $10 billion customer that analysts say is OpenAI

Broadcom shares soared 15% on Friday after the chipmaker said on its earnings call that it had secured a new $10 billion customer. Analysts quickly pointed to OpenAI. Following a better-than-expected earnings report late Thursday, Broadcom CEO Hock Tan told analysts that a fourth large customer had put in orders for $10 billion in custom artificial intelligence chips, which the company calls XPUs. "One of these prospects released production orders to Broadcom, and we have accordingly character

Broadcom’s stock pops on mystery $10 billion AI customer

Broadcom reported fiscal third-quarter earnings that beat expectations and provided robust guidance for the current quarter. The stock rose in extended trading after the company said it had secured $10 billion in orders from a new client for custom chips. Here's how the chipmaker did versus LSEG consensus estimates: Earnings per share: $1.69 adjusted vs. $1.65 expected $1.69 adjusted vs. $1.65 expected Revenue: $15.96 billion vs. $15.83 billion expected Broadcom said it expects $17.4 billion

Broadcom earnings primer: AI chip demand and growth are key

Broadcom is scheduled to report earnings for its fiscal third quarter after the close of regular trading on Thursday. Here's what analysts are expecting, according to a consensus from LSEG. Earnings per share: $1.65 $1.65 Revenue: $15.83 billion Broadcom, which develops custom chips for Google and other huge cloud companies and also makes networking gear needed to tie thousands of artificial intelligence chips together, is expected to report revenue growth of 21% from $13.07 billion a year a

Some VMware perpetual license owners are unable to download security patches

Some VMware perpetual license holders are currently unable to download security patches, The Register reported today. The virtualization company has only said that these users will receive the patches at “a later date,” meaning users are uncertain how long their virtualization environments will be at risk. Since Broadcom bought VMware and ended perpetual license sales in favor of bundled subscription-based SKUs, some organizations have opted against signing up for a subscription and are running

More VMware cloud partners axed as Broadcom launches new invite-only program

Broadcom is kicking some cloud service providers (CSPs) out of the VMware channel partner program, bringing uncertainty for the technological and financial futures of numerous businesses, especially small-to-medium-sized ones. As reported by The Register today, Broadcom this week revealed to VMware CSP partners that it is launching a new invite-only channel program for CSPs on November 1. Fewer CSPs are expected to be eligible for this new program. The Register said that “some mid-size partners

Telefónica DE shifts VMware support to Spinnaker due to cost

The German arm of telecoms biz Telefónica has shifted support for its VMware installed base to Spinnaker after Broadcom quoted it a renewal figure five times the size of what it was previously paying. Telefónica Germany made the switch to Spinnaker at the start of the year when its existing support with VMware, now a subsidiary of silicon-and-software giant Broadcom, expired. VMware must support crucial Dutch govt agency as it migrates off the platform, judge rules READ MORE The telco was run

VMware perpetual license holder receives audit letter from Broadcom

After sending cease-and-desist letters to VMware users whose support contracts had expired and who subsequently declined to subscribe to one of Broadcom’s VMware bundles, Broadcom has started the process of conducting audits on former VMware customers. Broadcom stopped selling VMware perpetual licenses in November 2023 in favor of pushing a small number of VMware SKUs that feature multiple VMware offerings. Since Broadcom is forcefully bundling VMware products, the costs associated with running