OpenAI and Broadcom Unveil Jalapeño: Custom AI Chip for LLM Inference at Gigawatt Scale in the U.S.

OpenAI and Broadcom have launched Jalapeño, a custom AI chip designed from scratch for LLM inference. Co-developed in just nine months, it promises substantial performance-per-watt gains and will power gigawatt-scale data centers starting in 2026, marking a major step in OpenAI's full-stack infrastructure strategy.

Last Updated: September 13, 2026 Editorial Process
Editorial Process
See more of Inside AI's trusted news by adding us as a preferred source on Google.
AI neural network visualization
Published on: June 24, 2026

June 24, 2026, (Inside AI) — OpenAI and Broadcom have unveiled Jalapeño, a custom AI accelerator chip purpose-built for large language model inference. The chip is the first in a multi-generation platform aimed at gigawatt-scale data center deployments with partners including Microsoft, starting later this year.

Engineering samples of Jalapeño are already running production workloads at target frequency and power, including GPT‑5.3‑Codex‑Spark. Early tests show performance per watt substantially better than current state-of-the-art, though final numbers are pending a detailed technical report.

The chip was co-developed in just nine months from design to tape-out, what the companies call the fastest ASIC cycle for high-performance semiconductors. It was handed to OpenAI CEO Sam Altman and President Greg Brockman by Broadcom CEO Hock Tan.

Jalapeño is not a general-purpose accelerator. It was architected from scratch around OpenAI’s deep understanding of LLM kernels, memory movement, networking, and serving patterns. The design reduces data movement and balances compute, memory, and networking to push realized utilization closer to theoretical peak performance.

Read: Microsoft and NVIDIA Unveil RTX Spark: 1 Petaflop AI Chip for Windows PCs

Broadcom contributed silicon implementation and networking technologies, including Tomahawk networking silicon. Celestica handled board, rack, and system integration. The platform is designed to work with all LLMs, guided by OpenAI’s roadmap of current and future models.

OpenAI President Greg Brockman said:

“The world is moving to a compute-powered economy. Jalapeño is part of our long-term full-stack infrastructure strategy to make compute more abundant, resulting in AI which is faster, more reliable, more affordable for people and businesses, and can be used to solve more important problems.”

The chip targets interactive LLM products at scale, combining the throughput of leading accelerators with latency closer to specialized inference systems. It reflects a full-stack approach: OpenAI designs everything from chip architecture to product experience, optimizing each layer for speed, reliability, and cost.

Richard Ho, who leads OpenAI’s hardware program, said:

“Jalapeño was designed from the ground up for LLM inference using detailed insights from our close collaboration with OpenAI researchers. We optimized the architecture around the kernels, memory movement, networking, and serving patterns that matter most for frontier AI models.”

Read: China’s DeepSeek Begins In-House AI Chip Development to Cut NVIDIA Reliance

Broadcom CEO Hock Tan added:

“Our collaboration with OpenAI represents a fundamental commitment to scaling the physical infrastructure required for the next decade of AI. This is just the beginning of a multi-generation roadmap. By co-developing our industry-leading silicon directly with OpenAI, we are enabling the deployment of gigawatt scale data centers with Microsoft and other partners beginning in 2026.”

The project strengthens a flywheel: better infrastructure drives efficiency, enabling better training and serving, which powers more capable models and products, driving usage and revenue that fund next-generation hardware. OpenAI also used its own models to accelerate chip design, hinting at a future where AI helps lower compute costs industry-wide.

Jalapeño is set for initial deployment by end of 2026, with expansion planned over multiple generations. The ultimate goal is to make advanced AI more accessible by turning infrastructure improvements into faster, cheaper, and more reliable services for users worldwide.

More from Inside AI

  • Features, Interviews, Press Releases

    Beyond Transcripts: Modulate Secures $25M to Scale Frontier Audio-Native AI Architecture Against Monolithic LLMs

    September 28, 2026
  • AI Policy & Regulation

    Nvidia Faces Democratic Scrutiny After Midterm Landslide

    November 10, 2026
  • AI Policy & Regulation

    Nvidia Board Investigates CEO Jensen Huang Over Alleged Chinese Intelligence Links

    November 10, 2026
  • AI Policy & Regulation

    Japan to create defense research hubs at universities for AI, space tech

    November 9, 2026
  • AI Policy & Regulation

    Elvis Presley Enterprises and Eminem’s Publisher Sue Suno Over AI Training

    November 9, 2026
  • AI In Business

    Northern Trust, Microsoft Deploy AI Agent to Cut Client Onboarding Time by 83%

    November 9, 2026
  • AI Policy & Regulation

    Nvidia Probes Jensen Huang Over Alleged China Intelligence Link

    November 9, 2026
  • AI Policy & Regulation

    Anthropic Must Face Lawsuit Over Claude Max Subscription Marketing

    November 9, 2026
  • AI In Business

    Disney and Adobe Sign Multi-Year Deal to Build Custom AI Models

    November 9, 2026

Never Miss a Breakthrough

Join 50,000+ readers who get our daily AI intelligence briefing. No fluff, just what matters.

Join Our Newsletter Community

Subscribe

Inside AI is an independent publication covering artificial intelligence news, machine learning research, and the tools shaping the future of technology. No hype. Just what's happening in the AI world.

Topics

  • Artificial Intelligence
  • Machine Learning
  • Generative AI
  • Agentic AI
  • Vibe Coding
  • Prompt Engineering
  • AI Policy & Regulation
  • AI Hardware & Infrastructure
  • AI Tools
  • AI In Business
  • Robotics
  • Cybersecurity AI
  • AI Safety
  • AI Tools & Reviews (Coming soon)

Company

  • Editorial Standards
  • Privacy Policy
  • Terms of Service
  • Contact
  • About Us

Others

  • Press Releases
  • Features
  • Sponsored Content
  • Advertise with us
  • Newsletter

© 2026 Inside AI. All rights reserved.

Designed by Blue Flare Digital