Performance Tag

Performance

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Tokens per Megawatt: OpenAI's Jalapeno Chip and Why Power Is Now the Price of Inference

OpenAI published the first measured results for Jalapeno, its Broadcom-built inference chip, at Hot Chips on August 25. The headline is 1.5 to 1.9 times more work per watt than Nvidia Blackwell. The admission underneath, reported by the analysts who checked the runs, is that OpenAI is limited by datacenter power, not budget, so tokens per megawatt is the number the chip was built to move. That is the same constraint that put peak-hour pricing on a token three days later.

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Cheap Is a Hardware Strategy

Google led I/O 2026 with a cheap, fast Gemini Flash instead of a frontier behemoth, and everyone read it as conceding the top of the market. Wrong read. Cheap isn't a model strategy, it's a silicon strategy. Google owns every layer from the TPU to the search box, which is why it can give intelligence away while its rivals rent the compute to compete with it, some of them for $40 billion.

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