OpenAI has announced Jalapeño, a custom-designed AI chip built with Broadcom that performs at the level of Nvidia's Blackwell and Google's Tensor processing units. The move allows OpenAI to reduce its reliance on Nvidia's GPU supply constraints and control its own hardware development; the chip is intended for AI inference workloads and is expected to deploy by the end of 2026.
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OpenAI revealed Jalapeño, an ASIC (application-specific chip) designed for AI inference—the step where an AI model processes a user's request and generates a response. The chip was developed in partnership with Broadcom and is positioned as the first step in a multi-generation compute platform that OpenAI expects to deploy by the end of 2026.
Why it matters
OpenAI joins Microsoft, Meta, and Amazon in building custom chips to power their AI servers, a shift driven by limited supply of Nvidia GPUs. According to Broadcom's CEO, Jalapeño matches the performance of Nvidia's Blackwell chips and Google's Tensor processing units, potentially allowing OpenAI to reduce its dependence on external suppliers and control its own hardware roadmap.
What to watch
OpenAI says early testing shows Jalapeño will deliver performance per watt substantially better than current state-of-the-art, though the company is still measuring final performance. The chip is expected to be deployed by the end of 2026.
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