On Tuesday, Futurum Group CEO Daniel Newman praised Broadcom Inc.’s (NASDAQ:AVGO) role in OpenAI’s new Jalapeño AI chip while warning against rushing to label the custom silicon an Nvidia Corp (NASDAQ:NVDA) “killer.”
Newman Praises Broadcom, Pushes Back on Nvidia Killer Narrative
Newman took to X after OpenAI published benchmark results for Jalapeño, its first custom inference chip developed with Broadcom.
OpenAI said its Jalapeño chip outperformed Nvidia’s GB200 and GB300 systems on performance per watt and latency across several AI models in InferenceX tests.
"$AVGO deserves a lot of credit here," Newman said, adding that while he would "reserve judgment" on OpenAI’s silicon program until more external testing and deployment, "Broadcom is likely the reason this went well."
He also took aim at the growing Nvidia challenger narrative, saying, "The $NVDA killer hyperbole is exhausting."
Jalapeño Chip Claims Higher Efficiency, Lower Latency
OpenAI evaluated Jalapeño using InferenceX, a benchmarking platform designed to assess AI inference performance.
The company compared the chip with the top results available at the time from Nvidia’s GB200 and GB300 superchips.
According to OpenAI, Jalapeño delivered 1.5 to 1.9 times more AI work per watt across GPT-OSS 120B, DeepSeek R1 and Kimi K2.5 1T, while achieving 1.7 to 3.6 times lower end-to-end latency.
The chip is designed for AI inference, rather than model training and OpenAI plans to begin deploying it in its infrastructure later this year, with production expected to ramp in 2027.
The company is also already developing second- and third-generation versions.
Newman Calls for External Benchmarks
In a separate post, Newman said OpenAI was making "big claims" with its first AI ASIC and called its assertion of "inference supremacy over $NVDA" a "massive claim and a lot of hyperbole."
"I’ll hold out for external benchmarks before buying this hype," he said.
There is also an important limitation: Jalapeño’s published comparison was against Nvidia’s GB200 and GB300 systems, not Nvidia’s newer Vera Rubin generation.
OpenAI has also said it will continue using Nvidia and other accelerators, suggesting Jalapeño is intended to diversify its computing infrastructure rather than immediately replace Nvidia hardware.
Price Action: Broadcom closed at $356.74, down 0.56% on Tuesday. Its shares were up 0.54% to $358.68 in Wednesday’s premarket trading, according to Benzinga Pro.
According to Benzinga Edge Rankings, AVGO ranks in the 94th percentile for Quality, while its price trend remains negative across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Below the Sky / Shutterstock
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