OpenAI challenges Nvidia with custom-built Jalapeño chip

The launch of Jalapeño marks a strategic departure from OpenAI's reliance on third-party silicon. By designing hardware tailored to the specific demands of ChatGPT, Codex, and future agentic systems, the company aims to reduce operating costs and increase service efficiency as demand for AI computing spikes. While the processor is not intended to replace all external accelerators, President Greg Brockman stated that owning more of the technology stack is essential for scaling intelligence to a broader user base.

This hardware move complements a rapid expansion into enterprise and financial sectors. OpenAI recently secured a deal to provide ChatGPT Enterprise to 120,000 BBVA employees, one of the largest deployments in the banking industry. Simultaneously, a new partnership with Visa aims to integrate secure payment capabilities directly into AI-powered shopping experiences. These commercial milestones coincide with mounting speculation regarding a potential public listing, fueled by the introduction of pre-IPO futures and Sam Altman’s recent indications that a market debut could arrive within the next year.