OpenAI Taps Broadcom for First Custom AI Chip Amid Samsung Partnership Talks

Key Facts

1OpenAI has selected Broadcom to develop its first custom AI inference chip, reportedly code-named Jalapeño.

In a strategic move to optimize hardware for its proprietary models, OpenAI has reportedly selected Broadcom to develop its first custom AI inference chip, code-named Jalapeño. This partnership reflects a broader industry trend where major AI developers seek to reduce reliance on external chip providers by designing in-house silicon. According to reports, OpenAI is also exploring parallel collaborations with Samsung to diversify its hardware supply chain.

The collaboration highlights Broadcom's dominant position in the AI infrastructure space, with the company reporting Q3 AI semiconductor revenue of $16.7 billion, a 221% increase year-on-year. Per market data, Broadcom (AVGO) shares closed at $364.38 on September 9, 2026. While the OpenAI win is significant, investor sentiment remains mixed as the market weighs the potential impact of OpenAI's ongoing discussions with Samsung regarding next-generation hardware.

At the close of September 9, 2026, AVGO was trading within a daily range of $359.25 to $368.01. Investors should monitor further disclosures regarding the scope of the Samsung partnership as a potential catalyst for price volatility. With no major US semiconductor-specific events on the immediate horizon, broader market sentiment may be influenced by global trade data, including the Chinese Balance of Trade figures released earlier today.