OpenAI Builds Its Own 'Jalapeño' AI Chip to Run ChatGPT Faster and Cheaper

OpenAI CEO Sam Altman and Broadcom President and CEO Hock Tan.Credit: OpenAI

On Wednesday, OpenAI announced its first custom AI chip, Jalapeño, as the first stage in its plan to develop first-party infrastructure for running LLMs. Called an "Intelligence Processor," the chip was developed with help from Broadcom and Celestica to help run services like ChatGPT and code-generation tools.

The companies say Jalapeño delivers better performance and efficiency when running already-trained models, rather than when training them. It's optimized for LLMs and the way they process information, enabling higher throughput and lower power consumption compared with current AI silicon running similar inference tasks.

Early statements from Broadcom's leadership say Jalapeño performs on par with Nvidia's latest Blackwell chips and Google's TPUs for these workloads, with around 50% better cost efficiency. That said, no technical specs like process node, clock speeds, or memory configuration have been released yet.

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