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OpenAI's first chip is here

Plus: Restore old photos with one prompt

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Welcome to AI Toast!

Here’s what’s on the menu today:

  • OpenAI and Broadcom Build a Chip for the AI Era

  • OpenAI Faces Pressure to Roll Out GPT-5.6 in Phases

  • Tutorial: Restore Old Photos with One Prompt

  • Quick Toasts: OpenAI and Anthropic backed a new $500M workforce initiative

Total read time: About 5 minutes, perfect for a quick coffee break

Image Source: OpenAI

OpenAI has introduced Jalapeño, its first custom-built AI inference chip developed in partnership with Broadcom. The chip is designed to make OpenAI's models faster, cheaper, and more energy-efficient to run.

  • Jalapeño is OpenAI's first in-house processor, built specifically for AI inference workloads.

  • The chip was designed and manufactured in collaboration with semiconductor giant Broadcom.

  • OpenAI says its own models assisted in developing the chip.

  • Early testing shows Jalapeño delivers significantly improved performance-per-watt compared to leading alternatives.

  • The processor is optimized for serving models in real time, particularly coding agents and chat applications.

  • Like Google and Amazon, OpenAI is developing custom silicon to lower costs and rely less on Nvidia GPUs.

  • OpenAI says it's now optimizing everything from models and data centers to chips, networking, and deployment systems.

Personal Take: This feels like a natural next step for OpenAI. The company isn't just building smarter models anymore, it's designing the hardware that powers them. As AI usage explodes, custom chips like Jalapeño could become a major advantage in making AI faster, cheaper, and more widely available.

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The Trump administration has reportedly asked OpenAI to release GPT-5.6 in phases, starting with a small group of trusted partners before making it broadly available, citing growing concerns about the capabilities of frontier AI systems.

  • OpenAI was reportedly asked to limit initial access to GPT-5.6 instead of launching it publicly all at once.

  • US officials are said to be increasingly concerned about the rapid advancement and potential risks of cutting-edge AI models.

  • According to reports, OpenAI CEO Sam Altman told staff the company should work with the government on safety feedback, even if it disagrees with some recommendations.

  • The move comes shortly after Anthropic restricted access to its most advanced models following government pressure.

  • The US government has recently tightened oversight of frontier AI models amid concerns over misuse, distillation, and foreign access.

  • Insiders reportedly worry that increased government scrutiny could affect how future OpenAI models are launched.

Personal Take: If true, this would mark a significant shift in how frontier AI models are deployed. Instead of simply shipping the most powerful models as soon as they're ready, companies may increasingly face expectations to treat advanced AI releases more like sensitive technologies—with staged rollouts, trusted access, and closer government oversight.

Tutorial: Restore Old Photos with One Prompt

Step 1: Open Gemini (or your favorite AI image editor).

Step 2: Upload your old, damaged, or faded photo.

Step 3: Paste this prompt:

"Restore this old photo and enhance it with modern, high-quality color tones similar to today's professional cameras. Add natural, vibrant, balanced colors with realistic skin tones and clean highlights. Improve lighting, contrast, and depth to match modern DSLR/mirrorless camera output. Remove all scratches, noise, blur, and fadingPreserve the person's identity, facial features, expression, and historical clothing while giving the photo a fresh, newly-captured look. Increase resolution to 4K ultra-high quality with sharp, detailed textures. Avoid over-saturation, filters, or artificial plastic skin-keep everything natural and life like."

Step 4: Generate the restored version.

Step 5: If needed, refine it with prompts like:

  • "Make the colors more natural."

  • "Keep the vintage look while improving clarity."

  • "Increase sharpness without changing facial features."

💡 Pro Tip: Add "Do not alter identity, expressions, or clothing details" to get the most authentic restoration results.

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