OPENAI
Meet the hottest chip in tech right now.
The latest batch of jalapeño chips isn’t made by Doritos or Pringles. It’s made by OpenAI.
(Yes, you read that correctly.)
After spending years running on Nvidia’s hardware, the lab has taken matters into its own hands. OpenAI partnered with Broadcom to develop an AI chip, named Jalapeño. It’s an Application-Specific Integrated Circuit (ASIC), which means it’s more task–specific than Nvidia’s general GPUs.
That means the new processor will drastically reshape how OpenAI scales its products… and just in time for its forthcoming IPO.
By the numbers:
Jalapeño took ~9 months to design, with the help of current AI models accelerating the development process.
Broadcom shares have risen 10% in 2026, nearly 7x their market value since 2022.
OpenAI plans to deploy the chip later this year and fully scale through early 2028.
Okay, but why now?
So far, OpenAI’s strategy has heavily relied on buying up Nvidia GPUs as quickly as possible. Which means they’re highly dependent on third-party suppliers.
Jalapeño doesn’t just allow the start-up to get more specific with its processes. It’s a move toward complete, vertical integration. AKA: the “full stack”. This creates more efficient, cost-effective, and self-reliant operations.
Looks like the competition is getting spicy.
In the words of the iconic Paris Hilton, “that’s hot” - TL