
Named Jalapeño, the new processor was designed specifically for the unique needs of OpenAI's inference systems.
OpenAI has unveiled its first custom-built inference processor, named Jalapeño, which was designed and manufactured in collaboration with Broadcom. The chip is specifically designed for inference, the process of running pre-built AI models in response to user commands, and early testing shows significantly better performance-per-watt than current alternatives. This matters because reducing inference costs could improve OpenAI's profitability, and the move reflects a broader industry trend where major AI companies build custom chips to reduce dependence on existing hardware makers like Nvidia. The chip represents OpenAI's effort to optimize its entire technology stack, from chip architecture down to product experience, all around the same goal of making its models faster, more reliable, and more affordable.

OpenAI, the company behind ChatGPT and Codex and the models those tools utilize, and Broadcom, an established silicon supplier, have announced a new chip called Jalapeño, designed specifically for large language model inference in data centers. The chip is intended to be deployed at large data centers, both companies claim this is just the first generation in a long-term project that will see chips refined over time.Read full article Comments

In its first earnings report since going public, the AI chipmaker forecast a narrower gross margin in its core business, scaring investors.

Revenue quadrupled to $41.45 billion compared with the same period a year ago. The company's profit, meanwhile, rose from $1.88 billion to an incredible $28.2 billion year-over-year.
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