Nvidia's dominance of the artificial intelligence chip market is facing a growing challenge as OpenAI and some of the world's largest technology companies push deeper into custom silicon, potentially threatening one of the chipmaker's most lucrative businesses.
OpenAI's first in-house AI chip, called Jalapeño, is emerging as the latest test of Nvidia's grip on the infrastructure powering the AI boom. OpenAI said that initial benchmarks showed the processor delivering "industry-leading speed and efficiency." The report comes a day after OpenAI said Jalapeño outperformed Nvidia's GB300 in the amount of AI work completed per unit of power and the speed at which the system returned responses.
