OpenAI and Broadcom on Wednesday unveiled their debut custom chip, called Jalapeño, marking the ChatGPT maker's first entry into artificial intelligence silicon. The chips will be made by Broadcom and used by OpenAI for inference, the compute-intensive process of serving its AI models to users in ChatGPT and other applications. The move is part of OpenAI's plan to 'build the full stack behind its models and products,' according to Greg Brockman, OpenAI's president, who stated that designing more of the stack allows the company to 'serve more intelligence with greater efficiency and keep pushing advanced AI toward broader access.' Since OpenAI kick-started the generative AI boom in 2022, the company has been one of the biggest buyers of Nvidia's graphics processing units, but is experiencing such an explosion in demand that it needs other sources of advanced silicon.
OpenAI and Broadcom Design Jalapeño Chip in Nine Months
OpenAI designed the chip in nine months and also crafted large parts of the computer system where it will be used. The companies are calling the chip an 'Intelligence Processor' and describe it as the first 'AI accelerator' in a platform they're building 'to make advanced AI faster, more reliable, and more accessible to more people.' The chip is an ASIC, which industry experts say is less flexible than Nvidia's GPU, but is also less expensive and can be designed for specific AI tasks. A physical sample of the new chip will be delivered to OpenAI on Wednesday. The companies said they're aiming for initial deployment of the Jalapeño chips by the end of 2026, 'expanding in the years ahead.' In October, after 18 months spent working together, OpenAI and Broadcom went public with plans to develop and deploy racks of OpenAI-designed chips starting late this year, ultimately aiming to build enough to require 10 gigawatts of power.
OpenAI Expands Chip Partnerships with AWS, AMD, and Cerebras
Earlier this year, OpenAI forged a deal with Amazon Web Services that includes use of the company's Trainium AI chips. OpenAI has also signed agreements with Nvidia rival Advanced Micro Devices and with AI chipmaker Cerebras, which held its initial public offering in May.
Broadcom Shares Rise 2% Following Announcement
Broadcom shares climbed about 2% following the announcement. Broadcom has been one of the biggest beneficiaries of the generative AI boom by helping hyperscalers and frontier labs create their own custom chips for AI. Shares of the chipmaker are up 10% so far in 2026 and have multiplied by almost sevenfold since the end of 2022.
FAQ
What is the Jalapeño chip announced by OpenAI and Broadcom?
Jalapeño is OpenAI's first custom AI chip, designed in partnership with Broadcom. The chip is an ASIC (application-specific integrated circuit) that will be manufactured by Broadcom and used by OpenAI for inference workloads — the compute-intensive process of serving AI models to users in ChatGPT and other applications. OpenAI designed the chip in nine months and also created large parts of the computer system where it will be used.
When will OpenAI deploy the Jalapeño chips?
A physical sample of the Jalapeño chip will be delivered to OpenAI on Wednesday. The companies stated they are aiming for initial deployment of the chips by the end of 2026, with expansion planned in the years ahead. OpenAI and Broadcom went public with their partnership in October after 18 months of working together, with plans to develop and deploy racks of OpenAI-designed chips starting late this year.
Why did OpenAI develop a custom chip with Broadcom?
OpenAI developed the custom chip as part of its strategy to 'build the full stack behind its models and products.' According to Greg Brockman, OpenAI's president, designing more of the stack allows the company to 'serve more intelligence with greater efficiency and keep pushing advanced AI toward broader access.' Since kick-starting the generative AI boom in 2022, OpenAI has been one of the biggest buyers of Nvidia's graphics processing units, but is experiencing such an explosion in demand that it needs other sources of advanced silicon.
