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Home/Models & Labs
Models & Labs

OpenAI unveils Jalapeño AI chip, outperforms Nvidia

The Rundown AI·August 26, 2026·high confidence

Why it matters

  • →OpenAI's Jalapeño chip demonstrates significant advancements in AI hardware efficiency.
  • →The chip's performance could lead to more cost-effective and faster AI model deployment.
  • →This move positions OpenAI alongside other tech giants developing proprietary AI hardware.
OpenAI unveils Jalapeño AI chip, outperforms Nvidia
©The Rundown AI

OpenAI has introduced its first in-house AI chip, Jalapeño, which has shown to outperform Nvidia's top GPUs in speed and power efficiency. The chip, developed with Broadcom, is designed for running AI models and not for training them. In tests, Jalapeño operated at 700 watts, delivering up to 3.6 times faster performance and 1.9 times more work per watt compared to Nvidia's 1,200-watt options. OpenAI plans to use the chip internally, with no current plans to sell it, as it continues to rely on Nvidia for training new models. This development marks a significant step in OpenAI's hardware capabilities.

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