Why everyone from OpenAI to SpaceX is building their own chips (and turning up the heat on Nvidia)

Nvidia has long dominated the AI accelerator market, but major tech companies are increasingly designing their own chips to reduce single-supplier dependence. OpenAI’s planned Jalapeño inference chip with Broadcom joins similar efforts from Google, Apple, and SpaceX.

The shift signals a broader move toward vertical integration as AI infrastructure becomes strategically critical and expensive. Nvidia is unlikely to lose its lead quickly, but custom chips could pressure margins, reshape supply chains, and give large AI players more control over cost and performance.