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OpenAI, Broadcom unveil Jalapeño chip for AI models

OpenAI, Broadcom unveil Jalapeño chip for AI models

Key takeaway

  • OpenAI and Broadcom have unveiled Jalapeño, a custom chip designed specifically for language model inference, marking OpenAI's first venture into custom hardware design.

  • The chip was designed from scratch in nine months and will be deployed at gigawatt scale by late 2026, reflecting OpenAI's strategy to control its full technology stack from chip to product for faster, more reliable, and lower-cost operations.

3 Key Points

  1. What happened

    OpenAI and Broadcom unveiled Jalapeño, OpenAI's first custom chip built from scratch for language model inference. The two companies are building a multi-generation platform together, with Broadcom handling manufacturing and networking, and Celestica managing boards and system integration. The design cycle took nine months, which OpenAI says is the fastest ASIC development cycle for high-performance semiconductors it is aware of.

  2. Why it matters

    OpenAI argues that controlling the full technology stack from chip to product allows it to run models faster, more reliably, and at lower cost. This move signals OpenAI's shift from focusing only on models and products into custom hardware—a strategy that may let it reduce dependence on existing chip suppliers and potentially improve the economics of running its AI services at scale.

  3. What to watch

    Early tests showed performance per watt that OpenAI claims is "substantially better" than current state-of-the-art hardware, though these are self-reported numbers that have not been independently verified and a technical report is expected to follow. The first deployment is planned for late 2026 at gigawatt scale, together with Microsoft and other partners.

Ask the AI about this article →

FAQ

When will Jalapeño chips be available?
The first deployment is planned for late 2026 at gigawatt scale, together with Microsoft and other partners.
How does Jalapeño differ from existing chips?
Jalapeño was designed from scratch specifically for modern language model inference, rather than being a modified general-purpose chip. Early tests showed performance per watt that OpenAI claims is "substantially better" than current state-of-the-art hardware, though these results have not been independently verified.
What are the roles of OpenAI, Broadcom, and Celestica in this project?
OpenAI handles the chip design, Broadcom contributes silicon manufacturing and networking technology including its Tomahawk networking chips, and Celestica handles boards, racks, and system integration.

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