Shares of Broadcom Inc. (AVGO) and Celestica Inc. (CLS) rose on Wednesday after Broadcom and OpenAI unveiled Jalapeno, the ChatGPT maker’s first custom AI chip. Celestica has partnered on boards, racks, and systems to support the new processors.
As of this writing Wednesday afternoon, AVGO stock Although it rose by about 1.6%, CLS stock It rose more than 5%.
OpenAI’s first ‘intelligence processor’ targets AI inference
The chip, called Jalapeno, is OpenAI’s first “intelligence processor” and the first accelerator in a multigenerational computing platform it is developing with Broadcom. The companies say the processor is built to support future AI inference workloads and make advanced AI faster and more reliable.
OpenAI said the chip leverages its understanding of large-scale language models to optimize inference workloads, and Broadcom provided the silicon implementation and networking technology needed to operate the platform at scale.
Early tests show high performance per watt
While OpenAI is still evaluating final performance, the companies said early tests show Jalapeno has better performance per watt than current state-of-the-art AI accelerators. A detailed technical report will be published in the coming months.
The companies say the system is built to improve efficiency and extract more performance from available computing resources. The platform also incorporates Broadcom’s Tomahawk networking technology.
AVGO explores multi-generation roadmap with Microsoft
Broadcom CEO Hock Tan said the partnership with OpenAI reflects a long-term commitment to building “the physical infrastructure needed for the next decade of AI.” He added that the effort marks the beginning of a “multi-generational roadmap” in which the company will co-develop silicon aimed at supporting gigawatt-scale data center deployments with Microsoft (MSFT) and other partners starting in 2026.
AVGO, CLS Stock: What Retail Traders Feel
On Stocktwits, retail sentiment for AVGO is Bearish and unchanged over the past week. Over the past 30 days, the volume of messages about this stock has increased by 1293%, and the number of retail watchers has increased by 6.8% over the same period.
For CLS, retail sentiment was ‘neutral’ at the time of writing, but message volume was ‘high’.
meanwhile AVGO stock is up about 10% since the beginning of the year, while CLS stock is up 24% in the same period.
