Nvidia CEO Jensen Huang Not Taking OpenAI's 'Jalapeño' Chip Personally: 'Lots of Projects Get Started. Lots of Projects Get Canceled'

Ananya Gairola

Sat, August 29, 2026 at 6:31 AM GMT+3 5 min read

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On Wednesday, Nvidia Corp CEO Jensen Huang brushed off OpenAI's new Jalapeño chip, saying he remains confident in Nvidia's technology and ability to supply the AI industry even as customers develop their own processors.

Jensen Huang Shrugs Off OpenAI's Jalapeño Chip Challenge

During an appearance on CNBC's Mad Money, Huang was asked by host Jim Cramer whether he was offended that a company receiving billions of dollars in Nvidia investment was simultaneously developing a chip capable of challenging Nvidia.

Huang said he was comfortable with the competition and pointed to the volatile nature of the AI-chip industry.

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"Lots of projects get started. Lots of projects get canceled," Huang said. "We're here to support our partners and we're going to build the world's best technology."

He added, "I don't have to take anything personally," arguing that Nvidia has enough confidence in its technology and scale to compete with emerging chipmakers.

Nvidia CEO Says Competition Won't Stop Its Growth

Huang pointed to Nvidia's broader platform, supply chain and technology scale as advantages.

"We have the supply chain and the technology scale to be their largest supplier," he said.

Despite the growing number of custom AI chips from companies including OpenAI, Alphabet Inc.'s Google, Amazon.com, Inc. and Meta Platforms, Inc., Huang argued that Nvidia's market position continues to strengthen.

"Today Nvidia is increasing our market share of the AI market," Huang said. "Our growth is accelerating. Our technology leadership is extending."

OpenAI also continues to rely on Nvidia hardware.

OpenAI's Jalapeño Chip Beats Nvidia GB300 In Key Tests

The comments came a day after OpenAI released benchmark results for Jalapeño, its first custom AI inference chip developed with Broadcom Inc..

OpenAI said the processor delivered more AI work per unit of power and returned responses faster than Nvidia's GB300 in testing.

Jalapeño is specifically designed for AI inference, meaning it runs already-trained models and generates responses rather than training new models. OpenAI says the chip is part of a broader effort to build more of its AI infrastructure internally.

However, the comparison has limitations. Jalapeño was not tested against Nvidia's newer Vera Rubin platform and it is not intended for AI training — an area where Nvidia remains deeply entrenched.

Nvidia Revenue Surges 106% on AI Demand

Nvidia posted $96.22 billion in second-quarter revenue, marking a 106% year-over-year increase and surpassing the Street consensus estimate of $92.18 billion.

The company's gross margin came in at 75%, slightly higher than 74.9% in the first quarter and up from 72.4% a year earlier.

For the third quarter, Nvidia expects revenue between $105.84 billion and $110.16 billion, representing year-over-year growth of 85.7% to 93.2% from the $57.01 billion reported in the same quarter last year.

Photo Courtesy: glen photo on Shutterstock.com

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