OpenAI and Broadcom Unveil Jalapeño Chip to Cut AI Token Costs and Scale Data Centers

OpenAI and Broadcom unveil Jalapeño, their first custom artificial intelligence chip, and deliver initial silicon as they prepare rack deployment later this year.The Jalapeño application-specific integrated circuit is built for large language models and inference, promises about 50% cost savings versus graphics processing units according to Broadcom CEO Hock Tan, and is intended to complement Nvidia hardware.OpenAI president Greg Brockman says the chip will support ChatGPT and Codex workloads, follows a $122B infrastructure funding round backed by Apollo Global Management and Blackstone, and factors into plans for an initial public offering that could value the company near $1T.
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