OpenAI unveils first chip as part of Broadcom deal in effort to 'build the full stack' - CNBC

OpenAI unveiled its first custom AI chip, named Jalapeño, on June 24, 2026. The chip was developed in partnership with Broadcom and is branded as an 'Intelligence Processor.' According to OpenAI, the chip is intended to reduce the company's reliance on Nvidia GPUs and to make AI more accessible by lowering costs. No specific performance benchmarks or pricing were disclosed in the announcement.

The Jalapeño chip is part of OpenAI's strategy to 'build the full stack,' integrating hardware, software, and model development. Broadcom's manufacturing expertise was leveraged for the chip's production. The chip is expected to be deployed in OpenAI's data centers for inference workloads, though the company has not confirmed a timeline for broad availability.

The partnership with Broadcom provides manufacturing scale and expertise. The success of the Jalapeño will depend on its performance relative to Nvidia's GPUs and the ease of adoption for developers. The announcement signals OpenAI's commitment to vertical integration and reduced dependence on key suppliers.