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OpenAI and Broadcom unveil Jalapeno custom chip for LLM inference

OpenAI and Broadcom have officially unveiled Jalapeño, a specialized custom chip engineered specifically for large language model inference. This partnership marks OpenAI's first major move into proprietary hardware, aiming to improve performance per watt while reducing operational costs. The project represents the beginning of a multi-generation platform designed to run massive AI models more reliably at scale by late 2026.

Сем Альтман та Хок Тан тримають велику прозору нагороду з круглим дизайном у центрі, посміхаючись перед дерев’яною стінкою.
Сем Альтман та Хок Тан тримають велику прозору нагороду з круглим дизайном у центрі, посміхаючись перед дерев’яною стінкою. · Image source: The-decoder

According to The-decoder, OpenAI and Broadcom have joined forces to launch Jalapeño, which OpenAI describes as its first Intelligence Processor. This custom accelerator is built from the ground up for modern large language model (LLM) inference rather than being a modified version of existing general-purpose hardware.

Strategic Hardware Partnerships

The development of Jalapeño involves a complex supply chain where each partner provides specific expertise. OpenAI leads the chip design, while Broadcom contributes silicon manufacturing and networking technology, including its Tomahawk series. Additionally, Celestica has been contracted to manage boards, racks, and overall system integration.

The collaboration aims to provide a full-stack solution that allows for faster and more cost-effective model deployment. Key details regarding the project include:

  • A development cycle from design to tape-out completed in just nine months.
  • Utilization of OpenAI's own models to accelerate the chip design process.
  • Planned gigawatt-scale deployment starting in late 2026.
  • A reported agreement where Microsoft will purchase 40 percent of the initial chips.
  • Performance and Technical Specifications

    OpenAI claims that Jalapeño delivers performance per watt that is "substantially better" than current state-of-the-art hardware. While these figures are self-reported and awaiting independent verification, the architecture focuses on minimizing data movement to push utilization closer to theoretical maximums. Engineering samples are currently running machine learning workloads in laboratory settings, including the GPT-5.3-Codex-Spark model.

    The move into custom silicon follows years of OpenAI focusing primarily on software and model development. By controlling the hardware layer, the company intends to mitigate the high costs associated with third-party infrastructure. Broadcom CEO Hock Tan noted that the first deployment will be a massive undertaking involving Microsoft and other key partners to support the next generation of AI scaling.

    The transition to custom ASICs highlights a growing trend where leading AI labs seek to decouple from general-purpose GPU dependencies to achieve better efficiency. As Jalapeño moves toward production, it will serve as a benchmark for how vertically integrated companies can optimize the underlying infrastructure for specific intelligence tasks.

    FAQ

    Who are the main partners involved in developing Jalapeño?
    OpenAI leads the chip design while Broadcom provides silicon manufacturing and networking technology. Celestica has been contracted to manage boards, racks, and overall system integration for the full-stack solution.
    What is the purpose of OpenAI's move into custom hardware?
    The company intends to improve performance per watt and reduce operational costs by controlling the hardware layer. This allows them to mitigate high costs associated with third-party infrastructure and decouple from general-purpose GPU dependencies.
    How long did it take to develop the Jalapeño chip design?
    The development cycle from initial design to tape-out was completed in just nine months using OpenAI's own models to accelerate the process.
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