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OpenAI Unveils Jalepeno, Its First Custom AI Chip

Broadcom said the chip offers about 50% cost savings versus typical AI graphics processing units and will help OpenAI reduce reliance on Nvidia.

  • On Wednesday, OpenAI and Broadcom unveiled their debut custom chip, Jalapeno, marking the ChatGPT maker's first entry into artificial intelligence silicon with initial deployment planned for late 2026.
  • Seeking to manage surging demand for its AI services, OpenAI aims to "build the full stack behind its models and products" and reduce reliance on Nvidia, which has dominated infrastructure since the generative AI boom began.
  • Broadcom Chief Executive Officer Hock Tan reported the "Intelligence Processor" ASIC offers cost savings of roughly 50% compared to typical graphics processing units, with OpenAI completing the design in nine months.
  • Finalized chips will be integrated into large data centers from OpenAI-backer Microsoft Corp. starting later this year, while Tan said the companies plan future versions in 2028 and annually thereafter.
  • To address surging demand for advanced silicon, OpenAI has signed agreements with Nvidia rival Advanced Micro Devices and Cerebras, having forged a deal earlier this year with Amazon Web Services for Trainium chips.
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OpenAI just announced its first custom chip to help ChatGPT run better

OpenAI on Wednesday announced its first custom AI chip in a step towards expanding beyond consumer products to become a player in AI infrastructure.

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oem.com.mx broke the news on Wednesday, June 24, 2026.
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