OpenAI and Broadcom Unveil 'Jalapeño' — OpenAI's First Custom AI Inference Chip
Summary
Updated Sep 19 — Jalapeño delivers 3.6× lower end-to-end latency than Nvidia GB300 at lower power, designed by a team of under 100 engineers using LLM-assisted workflows.
- • OpenAI and Broadcom unveiled 'Jalapeño', OpenAI's first custom ASIC chip designed for AI inference.
- • The chip was designed in just nine months; a physical sample was delivered to OpenAI on June 24, 2026.
- • Initial deployment is targeted for end of 2026, with long-term ambitions scaled to 10 gigawatts of power.
- • The move signals OpenAI's strategy to reduce Nvidia GPU dependence by building its own full silicon stack.
Updated Aug 26 — Jalapeño targets ~50% lower inference cost per response versus Nvidia chips; second- and third-generation chips are already in development.
Updates
700W peak, ~550W sustained power draw per chip
The Jalapeño chip is rated at 700W peak, with measured sustained draw closer to 550W under production inference workloads — a key power-efficiency datapoint for datacenter planning.
Full system: 2,048 accelerators, 27 EFLOP/s at 4-bit
A local domain comprises 128 Jalapeño accelerators; a full production system is 2,048 accelerators, reaching 27 EFLOP/s total at 4-bit precision across the deployment.
Up to 104x better vs Nvidia GB200/GB300 at specific operating points
HotChips 2026 benchmarks (presented by Richard Ho, Ravi Narayanaswami, Chris Leary): 1.5–1.9x better performance per watt at peak throughput; 1.7–3.6x better latency; up to 104x better at operating points where Nvidia hardware struggles.
Homogeneous design — one chip for the entire inference pipeline
Unlike the industry trend of splitting workloads across specialized prefill, speculative-decode, and full-decode hardware, Jalapeño is a single balanced part designed for the entire inference workload — enabling simpler, homogeneous datacenter integration.
AI-assisted circuit optimization: <1% to ~90% roofline in 40 hours
Using OpenAI's own models during chip design, one attention kernel implementation went from under 1% of the memory/compute roofline to nearly 90% in roughly 40 hours — a concrete demonstration of LLM-accelerated silicon design at frontier speed.
13.4 PFLOPS 4-bit, 232 GB memory, 15.4 TB/s bandwidth
Full technical specs disclosed post-launch: Jalapeño delivers 13.4 petaflops of 4-bit compute, accesses 232 GB of advanced memory at 15.4 TB/s bandwidth.
3.6× lower latency vs. Nvidia GB300 at lower power draw
OpenAI benchmarks show Jalapeño reduces end-to-end prompt-to-last-token latency by up to 3.6× compared to the Nvidia GB300 it currently relies on, while also consuming less power.
Design team averaged under 100 engineers total
The Jalapeño team averaged fewer than 100 people across hardware, software, and supply chain roles throughout the project — excluding Broadcom's physical design staff.
OpenAI: system design; Broadcom: physical design from gates onward
OpenAI handled inference accelerator, memory hierarchy, and networking; Broadcom took over physical implementation from the gate level down — a clear division that enabled the rapid design timeline.
LLMs gave OpenAI engineers 'superpowers' for iteration speed
VP of Hardware Richard Ho: models let engineers 'explore a lot more paths' and 'do things a lot faster' without replacing human judgment. Experts note LLMs are particularly well-suited to chip design tasks 'in the linguistic domain.'
Team already pursuing second and third-generation chip designs
As of the full August 25, 2026 unveiling, OpenAI's ~100-person hardware team was actively working on successor Jalapeño generations, signaling a sustained custom silicon roadmap beyond the first chip.
Industry experts rate the design timeline 'likely best in class today'
UCSD professor Andrew Kahng called the speed 'likely best in class today.' Verkor.io co-founders noted Broadcom's involvement was essential to achieving the timeline, and said LLM improvements could yield even faster future cycles.
Details
Jalapeño chip unveiled
OpenAI and Broadcom revealed 'Jalapeño', OpenAI's first custom AI chip — an ASIC designed specifically for inference workloads powering ChatGPT and other products.
ASIC vs. GPU tradeoff
ASICs are less flexible than Nvidia GPUs but cheaper and optimized for specific AI tasks; Jalapeño targets inference rather than the more demanding training workloads.
9-month design cycle
OpenAI designed the Jalapeño chip in just nine months, also crafting large parts of the computer system where it will be deployed.
10 GW long-term target
The companies' long-term ambition is to deploy enough Jalapeño-based racks to require 10 gigawatts of power — a massive infrastructure commitment.
Multi-vendor chip diversification
OpenAI has added AWS Trainium, AMD, and Cerebras deals in 2026 alongside Jalapeño, actively diversifying away from its near-total reliance on Nvidia.
Broadcom shares +2% on announcement
Broadcom stock rose ~2% on the news; shares are up ~10% year-to-date and have grown roughly sevenfold since the end of 2022.
Deployment by end of 2026
Initial Jalapeño chip deployment is targeted for end of 2026, with expansion planned in subsequent years.
Key facts and context about OpenAI's first custom chip launch with Broadcom.
What This Means
OpenAI's launch of its first custom AI chip marks a strategic inflection point in the company's infrastructure roadmap. By designing its own silicon for inference workloads, OpenAI is betting it can serve more users more efficiently and reduce its dependence on expensive Nvidia GPUs — mirroring the path taken by Google with TPUs and Amazon with Trainium. The nine-month design cycle shows OpenAI is moving at startup speed even on hardware. Success will depend on software ecosystem maturity and scale, but this is a credible first step toward OpenAI becoming a vertically integrated AI technology company.
Sentiment
Mostly positive and impressed by the strategic move toward vertical integration, with some noting competitive implications for open source and Nvidia
“The cat is out of the bag!! ... Significant collaboration with the industry leader $AVGO ... Engineering samples of the Jalapeño chip are running ML workloads in the lab at production target frequency and power, including GPT‑5.3‑Codex‑Spark. Performance per watt at scale is the key metric here for OpenAI leveraging Broadcom’s compute and networking technologies”
“OpenAI is now designing its own inference chips. They partnered with Broadcom on Jalapeño, a custom accelerator built specifically for LLM inference at massive scale. Custom inference chips like Jalapeño make it even harder for open source models to compete on cost and efficiency at scale.”
“OpenAI's First Custom Chip Is As Hot As A Jalapeño For AI, As The Firm Calls It The "Best Inference Platform" for LLMs”
“🚨 BREAKING: OPENAI AND BROADCOM JUST UNVEILED JALAPEÑO A CUSTOM AI CHIP BUILT FROM SCRATCH TO BREAK THE INFERENCE BOTTLENECK. ... Went from design to tape-out in just 9 months ... Early lab tests show performance-per-watt "substantially better" than current top accelerators”
Split
~65/35 positive/concerned split — excitement over cost/performance gains and full-stack control vs. worries about open-source competitiveness and Nvidia dependency reduction.
Sources
- OpenAI unveils first chip as part of Broadcom deal in effort to 'build the full stack' - CNBCCNBC
- OpenAI and Broadcom unveil LLM-optimized inference chip - OpenAIOpenAI
- OpenAI unveils its first custom chip, built by BroadcomTechCrunch
- Why everyone from OpenAI to SpaceX is building their own chips (and turning up the heat on Nvidia)TechCrunch
- OpenAI says its Jalapeño chip can power faster AI responses than the competitionThe Verge
- OpenAI’s Jalapeño chip is built for fast inference at scale, benchmarks showTechCrunch
- The full stack behind abundant intelligenceOpenAI
- Jalapeño’s first results show industry-leading speed and efficiency in AI inferenceOpenAI
- A detailed look at Jalapeño, OpenAI's ASIC developed with Broadcom in 16 months, which beat Nvidia, AMD, and Google chips on multiple top open-weight modelsNewsletter
- OpenAI's custom inference chip promises faster ChatGPT and lower costsApp
- OpenAI's Jalapeño inference accelerator moves toward deploymentTracking
- OpenAI's Jalapeño Optimizes Inference Throughput and Token LatencyTracking
- [AINews] Hot Chips: OpenAI’s Jalapeño, Cerebras CS-5, Groq 3 LPX, Apple M6Latent
- How OpenAI Used Its Own LLMs to Design Its Jalapeño ChipSpectrum
- Inside OpenAI's Custom Jalapeño AI Accelerator (29 minute read)Morethanmoore
