Why is OpenAI developing its own chip?

To reduce single-supplier dependency (Nvidia), lower costs, and improve model performance.

When will the Jalapeño chip be available?

No launch date has been announced; it is expected to be used internally first.

Which other companies are developing their own chips?

Google, Apple, and SpaceX are among the companies developing custom AI chips.

OpenAI Develops Custom AI Chip 'Jalapeño' with Broadcom

OpenAI announced plans to develop a custom inference chip codenamed Jalapeño in collaboration with Broadcom, joining a growing list of companies building their own chips to reduce dependence on Nvidia.

June 26, 2026

2 min read

Source: TechCrunch

OpenAI has announced plans to develop a custom AI inference chip codenamed Jalapeño, in collaboration with Broadcom (AVGO). The move aims to reduce single-supplier risk, a clear reference to Nvidia's dominance in the AI chip market.

The Product

Jalapeño is an inference chip designed to run pre-trained AI models more efficiently and at lower cost. OpenAI is partnering with Broadcom for manufacturing, leveraging Broadcom's expertise in custom chip design.

Pricing and Availability

OpenAI has not disclosed pricing details or a commercial launch timeline. The chip is expected to be used internally first before being offered to customers.

Competition

This move comes as major companies like Google (GOOGL), Apple, and SpaceX race to develop their own chips, increasing pressure on Nvidia, which dominates the AI chip market. OpenAI currently uses Nvidia chips for training its models.

Potential Impact on the Company

Developing a custom chip could lower operating costs in the long run and improve the performance of OpenAI's models, while reducing the risks of single-supplier dependency. It also strengthens Broadcom's position in the custom chip market.

Frequently Asked Questions

A custom AI inference chip developed by OpenAI in collaboration with Broadcom to reduce reliance on Nvidia.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.