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“We have such a strong demand for compute within the company. It's going to take us a good long time to even fill our own demand, which is growing all the time,” Ho said. “I think that we're going to have our hands full just providing compute for OpenAI for a good long time. That's not to say that it can't be used elsewhere. I believe it could be, but I think our priority is to make sure that OpenAI's compute needs are met first and foremost.”
The competitive positioning of Jalapeño mainly comes down to the benchmarks OpenAI shared during Hot Chips, run on SemiAnalysis’ InferenceX benchmark and comparing Jalapeño to Nvidia’s GB200 and GB300. ASICs are common, but competitive performance for them isn’t common, and for good reason. They’re built to accelerate specific workloads. With Jalapeño, however, OpenAI demonstrated the chip accelerating its own open-weight GPT-OSS model, as well as DeepSeek R1 and Kimi K2.5.
Originally, OpenAI didn’t plan to show benchmarks at Hot Chips, and the company wasn’t sure if it would present at the event at all, Ho told us. The executive reiterated the story OpenAI told on the Hot Chips stage, about how a team of engineers got Kimi and DeepSeek up and running on Jalapeño in the two months between the A0 sample and the Hot Chips presentation.
Although Ho was clear that Jalapeño is being deployed internally and will remain internal for the time being, he certainly left the door open to a wider entry into the hardware market. Speaking on the benchmarks shown at Hot Chips, Ho said: “What we really wanted to demonstrate, to put to rest, the misperception in the industry that our custom inference chip was only for OpenAI models… It’s programmable, and it’s general purpose, and it’s not hard-coded for OpenAI models.”
Hot Chips 2026: OpenAI's Jalapeño AI ASIC unpacked
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/artificial-intelligence/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/artificial-intelligence/openais-custom-jalapeno-ai-inference-asic-is-for-openais-internal-use-but-company-leaves-the-door-open-to-broader-rollout-firm-says-it-will-have-its-hands-full-with-jalapeno-for-a-good-long-time#main
- https://www.tomshardware.com/membership
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Informational only. No financial advice. Do your own research.