Nvidia Slide on Broadcom-OpenAI Pact Threatens $4 Trillion Value

Nvidia Corp. shares fell on Friday, with the chipmaker at risk of losing its historic $4 trillion valuation for the first time in nearly two months.

The drop came as Broadcom Inc. is helping OpenAI design and produce an artificial intelligence accelerator chip, with the two firms reportedly planning to ship the first chips in that lineup starting next year. This would make Broadcom a more direct competitor to Nvidia, the leader in AI hardware.