Models & Labs
OpenAI unveils Jalapeño, its first custom AI chip
The Rundown AIhigh confidence
Why it matters
- →Jalapeño represents a strategic move for OpenAI to control its compute layer, reducing reliance on external suppliers like Nvidia.
- →The rapid development cycle of Jalapeño, aided by AI, sets a new benchmark for ASIC chip design efficiency.
- →Owning the hardware allows OpenAI to optimize performance and cost across its AI models and products.
OpenAI has announced Jalapeño, its first custom AI chip developed with Broadcom, marking a strategic shift towards owning its compute infrastructure. The chip, designed for inference, reportedly offers performance per watt that exceeds current industry standards. Developed in just nine months, Jalapeño showcases OpenAI's ability to rapidly innovate in hardware, with its own AI models playing a key role in the design process. This development could significantly reduce OpenAI's dependency on Nvidia, as the company aims to power 10 GW of compute with custom chips by 2029.
Read originalThe story around this
Earlier coverage that leads up to this article, and what followed. Lines connect each piece to the closest one after it, converging here.
How we got here
- 1OpenAI Unveils New Spud AI Model
AI Explained · March 26, 2026 · Background
- 2OpenAI's GPT-5.5 Testing Shows Promising Results
Wes Roth · April 21, 2026 · Background
- 3OpenAI announces GPT-5.5 availability
Matthew Berman · April 23, 2026 · Background
- 4OpenAI Launches GPT-5.5 as Advanced AI Model
AI News · April 29, 2026 · Background
- 5OpenAI unveils GPT-5.5 Instant System Card
OpenAI · May 5, 2026 · Related
- 6OpenAI reportedly developing phone for ChatGPT
The Verge AI · May 5, 2026 · Related
- 7OpenAI accelerates AI phone development for 2027
The Rundown AI · May 6, 2026 · Related
- 8NVIDIA Launches Vera CPU for Agentic AI
NVIDIA Blog · May 18, 2026 · Background
What happened next
- 9OpenAI's Jalapeño Chip Boosts AI Inference Efficiency
OpenAI · August 25, 2026 · Same story
- 10OpenAI's Jalapeño Chip Outperforms Nvidia in AI Tasks
The Verge AI · August 25, 2026 · Same story
- 11OpenAI's Jalapeño Chip Outperforms in Benchmarks
TechCrunch AI · August 25, 2026 · Same story
- 12OpenAI unveils Jalapeño AI chip, outperforms Nvidia
The Rundown AI · August 26, 2026 · Same story
- 13OpenAI Releases Jalapeño Inference Results
Matt Wolfe · August 28, 2026 · Related
Follow this story
Open the full story →OpenAI and Broadcom unveil LLM-optimized chip
8 developments
- Jun 24 · OpenAI
OpenAI and Broadcom unveil LLM-optimized chip - Jun 24 · The Verge AI
OpenAI unveils Jalapeño AI processor - Jun 24 · TechCrunch AI
OpenAI Reveals Custom Chip 'Jalapeño' with Broadcom - Jun 25 · The Rundown AI
OpenAI unveils Jalapeño, its first custom AI chip (This article) - Jun 25 · The AI Daily Brief
OpenAI Develops Custom Chip 'Jalapeño' - Jun 26 · TechCrunch AI
OpenAI Develops Custom Jalapeño Chip with Broadcom - Jun 26 · TechCrunch AI
OpenAI Develops Custom Chip, Jalapeño, with Broadcom - Jul 3 · Lev Selector
OpenAI Develops 'Jalapeno' AI Chip for LLM Inference
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