Competition Heats Up with OpenAI-Broadcom Jalapeño Chip and Cerebras Forecast
NVDA•OpenAI and Broadcom unveiled the Jalapeño AI inference chip, claiming improved performance per watt in early tests and lifting Broadcom shares over 1%. Cerebras forecast 2026 revenue of $855–865 million, topping estimates but warning of capacity constraints and a 10–15 point margin drop, intensifying competition with Nvidia.
1. OpenAI and Broadcom Launch Jalapeño Chip
OpenAI and Broadcom introduced the Jalapeño custom AI inference chip after a nine-month development cycle, targeting faster inferencing with better performance per watt than current processors. Early testing indicates significant efficiency gains, prompting Broadcom shares to climb over 1%.
2. Cerebras Issues 2026 Sales Forecast
Cerebras projected 2026 revenue of $855–865 million, exceeding the $824.8 million consensus, yet flagged data center capacity constraints that will require system rentals and a 10–15 point margin reduction. The outlook highlights execution challenges even as first-quarter revenue jumped 94% to $193.4 million.
3. Implications for Nvidia
The emergence of custom AI chips from OpenAI, Broadcom, Cerebras and hyperscalers like Amazon and Google signals mounting pressure on Nvidia’s dominance in data center GPUs. Increased vertical integration by major AI players could limit Nvidia’s pricing power and market share unless it accelerates innovation or expands production capacity.
