The chip would give AI model makers the option to offer lower token prices, possibly easing the concerns of businesses worried about higher token costs.
June 24, 2026
OpenAI and Broadcom unveiled a new LLM-optimized inference chip on Wednesday, as the generative AI vendor seeks to reduce token costs for businesses and gain a competitive advantage over rival Anthropic.
The chip, named Jalapeño, is OpenAI’s first intelligence processor. It is the first step for the ChatGPT maker toward building a full stack behind its models and products. OpenAI designed the chip from the start to work with all LLMs. The vendor said it will release a detailed technical report on the model in the next few months but said the chip’s architecture reduces data movement and balances compute, memory and networking resources to achieve peak performance.
The chip is a strategic move for the AI vendor, which has been trying to diversify its infrastructure by partnering with Nvidia, Cerebras and now Broadcom. However, having its own chip now gives it options, as more businesses are conscious of inference costs and rising token prices. OpenAI, for the first time in a long while, also appears to have grabbed the spotlight from Anthropic, which has been releasing models and services rapidly and outpacing OpenAI.
