OpenAI is copying Apple’s biggest competitive advantage — and Nvidia should be paying attention
OpenAI's custom AI chip isn't just another attempt to loosen Nvidia's grip on AI hardware. It's the clearest sign yet that OpenAI is adopting the same vertically integrated strategy that transformed Apple over the past decade.
When OpenAI and Broadcom recently shared new details about Jalapeño, their custom inference processor, most of the discussion focused on Nvidia. Nvidia currently sits at the center of the AI industry, supplying the graphics processors that power everything from ChatGPT to image generators and coding assistants. Any attempt to reduce that dependence is naturally headline news.
For years, Apple has enjoyed a competitive advantage from making the most important parts of its products in-house. Instead of relying on someone else's processors or designing software around third-party hardware, it designed and built its own hardware and software. Competitors spent years trying to match that integration.
With its new custom inference processor, OpenAI appears...
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