OpenAI and Broadcom reveal Jalapeno, first AI chip in partnership
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OpenAI and broadcom On Wednesday, ChatGPT unveiled its first custom chip, called Jalapeño, marking the maker’s first foray into AI silicon.
The chips will be manufactured by Broadcom and used by OpenAI for inference, the compute-intensive process of presenting AI models to users in ChatGPT and other applications. This is an important step in OpenAI’s plan to “build a full stack behind its models and products,” according to the press release.
“By designing more stacks ourselves, we can deliver more intelligence with greater efficiency and continue to advance advanced AI toward broader reach,” OpenAI president Greg Brockman said in a statement.
Broadcom shares rose nearly 2% following the announcement.
Since OpenAI launched the generative AI boom in 2022, the company has been one of the biggest buyers. Nvidia’s Expensive graphics processing units are a core part of the infrastructure for building AI models and running large workloads. But OpenAI is experiencing such a boom in demand that it needs other advanced silicon resources.
A deal was struck with OpenAI earlier this year Amazon Web Services that involve the use of the Company’s Trainium AI chips. OpenAI also signed deals with Nvidia rival Advanced Micro Devices and with the artificial intelligence chip manufacturer brains, It held its first public offering in May.
In October, after 18 months of working together, OpenAI and Broadcom publicly announced plans to develop and distribute racks of OpenAI-designed chips starting later this year, aiming to ultimately produce enough to require 10 gigawatts of power.
The chip from Broadcom is an ASIC that industry experts say is less flexible than Nvidia’s GPU but is also cheaper and can be designed for specific AI tasks. OpenAI said it designed the chip in nine months and also prepared large parts of the computer system in which it will be used.
The companies call the chip the “Intelligence Processor” and describe it as the first “AI accelerator” in a platform they are building “to make advanced AI faster, more reliable and more accessible to more people.”
Broadcom has been one of the biggest beneficiaries of the generative AI boom, helping hyperscalers and leading labs create their own custom chips for AI. Shares of the chipmaker are up 10 percent so far in 2026 and are up nearly sevenfold since the end of 2022.
A physical sample of the new chip will be delivered to OpenAI on Wednesday. The companies said they aim to make the first distribution of Jalapeño chips by the end of 2026, “with expansion in the coming years.”
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