OpenAI claims its new chips can outperform Nvidia processors in tests

Dina Bass / Bloomberg08-26 09:54

OpenAI created Jalapeno in a partnership with Broadcom Inc, which makes custom chips for a variety of clients.(Aug 26): OpenAI said that its new Jalapeno chips performed better than Nvidia Corp's ...

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It joins a stampede of companies working to develop home-grown AI chips - a field currently dominated by Nvidia.\nThe new chip should significantly reduce costs for OpenAI as it rolls out more widely, Ho said on the Bloomberg Tech show on Tuesday. \"It's a really good chip - it should drop it by a lot,\" he said. The company aims to handle more AI tasks with its own chips, as long as OpenAI can increase production of Jalapeno and the cost savings are as material as expected, he said. \nOpenAI created Jalapeno in a partnership with Broadcom Inc, which makes custom chips for a variety of clients. The two companies, which announced their pact last year, touted the speed at which the processor was developed in June, saying it came together in record time.\nTypically, some chips are more powerful at running AI tasks and others are better at fast responses, but Jalapeno offers both, Ho said. OpenAI will determine which of its AI models will run on Jalapeno, he said, allowing customers to benefit by selecting options that offer either cost savings or better performance.\n\"In the lab, Jalapeno is showing performance both in the high-throughput domain, meaning it will be able to serve a lot of customers more cheaply, as well as the low-latency domain, meaning that for the customers that care about it, the response time will be really, really fast,\" Ho said.\nBecause the chip is achieving strong results at low voltage - 700 watts - Jalapeno will allow OpenAI to save money when running its data centres, where power is a key cost, he said.\nJalapeno wasn't tested against the new generation of Nvidia chips, Vera Rubin, which just began shipping. It's also not designed for training AI models, an area where Nvidia technology excels. Jalapeno is intended for the inference phase of AI - the stage when models have already been trained and can begin responding to prompts and handling tasks.\nJalapeno's speed benefits are such that OpenAI can achieve results previously only possible with chips that use a different type of memory and design. For example, OpenAI currently relies on Cerebras Systems Inc's technology for some of its models. But that kind of chip is best-suited to smaller models, Ho said.\nJalapeno, in contrast, can handle larger ones, he said. Still, OpenAI's technology won't replace providers like Cerebras anytime soon, Ho said. \n\"We have so much need for compute, which is why we signed up so many different providers,\" he said. \"That's going to continue for a while.\"\nHo will speak on Tuesday at the Hot Chips conference at Stanford University. He said OpenAI wants to be public about what it's done in order to help spur innovation in the AI chip space.\nOther start-ups are working on similar ideas. Etched, which said last week that it raised funds at a US$21 billion ($27 billion) valuation, is starting to ship a low-voltage chip. And a company called MatX, founded by two alumni of Google's silicon business, is working on a semiconductor that aims to achieve both high throughput and low latency. \nOpenAI publicly tested its new chips using one of its smaller, open-source models, as well as third-party models from DeepSeek and Moonshot AI. Jalapeno delivered wider advantages on Moonshot's Kimi model, the largest one OpenAI tried it on. During internal tests, it also performed well running some of OpenAI's large, advanced models that have yet to be released. That suggests the chip's design \"becomes more valuable as workloads grow larger and more demanding\", the company said in a blog post.\nOpenAI said it used its own AI models to more rapidly develop the chip. A second version is already far along in the process. The company expects to tape out the chip - a final stage in design - in the \"coming months\", Ho said.\nOpenAI is already designing the concepts for the third generation, as the company looks to lower the costs of the vast amounts of AI infrastructure it's constructing across the globe. \"We're at a cost level and a power level that will bring the infrastructure cost down,\" Ho said. \"This is step one.\"\nEven as OpenAI touts its own work and measures it against Nvidia, Ho took pains to note that it still regards that company as a key supplier of chips. \"Nvidia is a really good partner, and we continue to need a lot of Nvidia,\" he said.\nUploaded by Tham Yek Lee","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"productRelease","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.47.1","shortVersion":"4.47.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2662747700","isCrawlerRequest":true}