European CSP Group Seeks Block on Broadcom’s VMware Exit; AI Accelerators Soar 140%
A European cloud provider coalition of almost 50 members has petitioned EU regulators for an interim measure to halt Broadcom’s termination of its VMware Cloud Service Provider program, which excluded most CSPs. Separately, Broadcom’s custom AI accelerators jumped 140% year-over-year, projected to drive software revenue to $100 billion by 2027.
1. EU Coalition Seeks Interim Suspension of VMware Exit
A coalition of nearly 50 European cloud service providers has urged EU competition authorities to impose an interim measure preventing Broadcom from ending its VMware Cloud Service Provider program in Europe. The group argues that Broadcom’s unilateral exclusion of most CSPs harms competition and seeks immediate readmission and safeguards against partner retaliation.
2. AI Accelerator Growth Underpins Revenue Outlook
Broadcom’s custom AI accelerators delivered a 140% year-over-year revenue increase in the latest quarter, forming the basis for management’s forecast of over $100 billion in software-related revenue by the end of 2027. The company trades at roughly a 30x forward P/E, justified by its faster growth trajectory compared with semiconductor peers.