On June 24, 2026, OpenAI and Broadcom announced the introduction of the Jalapeño chip, which represents OpenAI's initial foray into custom artificial intelligence silicon. This chip will be manufactured by Broadcom and is intended for inference tasks, which are crucial for delivering AI capabilities in applications like ChatGPT.
OpenAI's president, Greg Brockman, emphasized that by designing more of their technology stack, they aim to improve efficiency and broaden access to advanced AI. Following the announcement, Broadcom's stock rose approximately 2%. OpenAI has been heavily reliant on Nvidia's GPUs for AI model development but is now diversifying its silicon sources due to increasing demand.
Earlier this year, OpenAI partnered with Amazon Web Services for Trainium AI chips and has also engaged with AMD and Cerebras. The Jalapeño chip, an application-specific integrated circuit (ASIC), is designed for specific AI tasks, offering a cost-effective alternative to Nvidia's GPUs.
The companies plan to deliver a physical sample of the chip soon, with initial deployment expected by late 2026, and they aim to scale production significantly in the following years. Broadcom has seen substantial growth, with its shares increasing by 10% in 2026 and nearly sevenfold since late 2022, largely due to the demand for custom AI chips