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OpenAI Unveils First Custom AI Chip 'Jalapeño', Boosting Prospects for Samsung and SK Hynix
🇰🇷 South Korea /Technology

OpenAI Unveils First Custom AI Chip 'Jalapeño', Boosting Prospects for Samsung and SK Hynix

From Dong-A Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • OpenAI and Broadcom unveiled their first jointly developed AI chip, codenamed 'Jalapeño', designed for inference.
  • The chip aims to improve cost-effectiveness in AI operations, a key challenge for tech giants.
  • The development is expected to benefit memory chip manufacturers like Samsung and SK Hynix as big tech companies increasingly develop their own AI hardware.

OpenAI, in partnership with semiconductor firm Broadcom, has revealed its first self-developed artificial intelligence chip, codenamed 'Jalapeño'. This chip is specifically designed for AI inference and is highlighted by OpenAI for its cost-effectiveness compared to existing AI hardware. The move comes as major tech companies, including Google, Amazon, and Meta, are investing heavily in developing their own AI chips to reduce the substantial costs associated with building and operating AI infrastructure.

OpenAI plans to deploy Jalapeño in its own data centers starting later this year. While specific performance details remain undisclosed, initial tests suggest the chip offers superior performance per watt of energy consumed compared to current leading technologies. The companies intend to release a technical report with precise performance metrics in the coming months. For OpenAI, which is reportedly preparing for an initial public offering, securing a viable revenue model and cutting AI infrastructure expenses are critical priorities.

Big tech companies' development of their own AI chips creates a new market distinct from existing mass-produced AI chips, which will expand the overall market share for memory semiconductors.

— Yoo Hoe-joonProfessor Yoo Hoe-joon of the Electrical and Electronic Engineering department at KAIST commented on the positive implications of big tech's custom AI chip development for the memory semiconductor market.

The broader trend of big tech developing custom AI chips is creating new market opportunities and is anticipated to sustain the growth of memory semiconductor companies such as Samsung Electronics, SK Hynix, and Micron. Experts suggest that these custom chips represent a distinct market segment that will expand the overall semiconductor industry. Google has already seen success with its Tensor Processing Units (TPUs) for AI model training and inference, and is now making them available to external clients. Similarly, Amazon is selling its Trainium and Inferentia chips to third parties, with high demand reported for its latest Trainium generation.

The Trainium 3rd generation, which began shipping earlier this year, is already mostly sold out.

— Peter DeSantisPeter DeSantis, Amazon's senior vice president of AI, stated this in an interview with Bloomberg News on June 19.
DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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