OpenAI, Broadcom Unveil Jalapeno AI Chip Promising Faster, Cheaper Model Runs

OpenAI unveiled its first custom artificial intelligence chip developed in partnership with Broadcom Inc., part of a bid by the ChatGPT maker to gain an edge by tailoring hardware to better run its AI products.

The companies said Wednesday that OpenAI has received the first samples of the chip, called Jalapeno, and is testing how the silicon handles running AI workloads. So far, the accelerator is showing cost savings of roughly 50% compared with typical AI graphics processing units, Broadcom Chief Executive Officer Hock Tan said in an interview.

The chip is OpenAI’s first “Intelligence Processor” — an accelerator architected around OpenAI’s vision for LLM inference. Broadcom’s silicon implementation and networking technologies, including Tomahawk networking silicon, help bring the platform to large-scale production.

Jalapeño was co-developed from initial design to manufacturing tape-out in just nine months. OpenAI models were used to accelerate parts of the design and optimization process. Initial deployment in Microsoft and partner data centers is targeted for end of 2026, with a multi-generation roadmap including a 2028 follow-on chip.