Broadcom Inc. (NASDAQ: AVGO) shares rise on Wednesday following the announcement of Jalapeño, an AI inference chip co-developed with OpenAI for gigawatt-scale data centers.

OpenAI unveiled Jalapeño, its first AI chip, built with Broadcom for inference, as it moves to cut its heavy reliance on Nvidia.

Eight months after announcing a custom chip deal, OpenAI and Broadcom are revealing their first joint project: Jalapeño.

OpenAI’s first chip could help decrease its reliance on Nvidia.