Broadcom and OpenAI Launch Custom AI Chip 'Jalapeño'

Broadcom Inc. (NASDAQ:AVGO) and OpenAI announced the launch of their first custom AI chip, named Jalapeño, on June 24, 2026, as reported by Reuters. This milestone marks Broadcom's entry into the custom AI chip market while providing OpenAI with tailored hardware for its AI workloads.

The Product

The Jalapeño chip is designed specifically to accelerate training and inference of AI models, giving OpenAI greater control over performance and efficiency compared to off-the-shelf chips from other vendors. Full technical specifications have not been disclosed.

Pricing and Availability

Neither Broadcom nor OpenAI has disclosed pricing details or a commercial production timeline. The chip is expected to be initially deployed within OpenAI's data centers.

Competition

Broadcom enters a market dominated by NVIDIA (NVDA) for AI chips, along with competitors like AMD (AMD) and Google (GOOGL) via its TPU. This launch tests Broadcom's ability to compete in this high-growth segment.

Potential Impact on the Company

The collaboration with OpenAI presents an opportunity to boost Broadcom's revenue in the AI sector, which is experiencing surging demand. For OpenAI, owning a custom chip reduces reliance on external suppliers and improves model performance.