TNB Tech Minute: OpenAI And Broadcom Develop a Custom Chip for AI Inference
WSJ Tech News BriefingJune 24, 202600:02:49

TNB Tech Minute: OpenAI And Broadcom Develop a Custom Chip for AI Inference

Plus: Qualcomm to acquire AI software firm Modular in $3.9 billion stock deal. And Zoox debuts redesigned robotaxi for large-scale production. Julie Chang hosts. Learn more about your ad choices. Visit megaphone.fm/adchoices

Plus: Qualcomm to acquire AI software firm Modular in $3.9 billion stock deal. And Zoox debuts redesigned robotaxi for large-scale production. Julie Chang hosts.

Learn more about your ad choices. Visit megaphone.fm/adchoices

[00:00:00] [SPEAKER_02] Many companies are struggling to scale their AI deployments or even move them past the pilot stage. Often the problem isn't technology, but organizational misalignment around goals, processes, and incentives. At the break, join Caroline Roach, Senior Partner, IBM Consulting, to learn why.

[00:00:16] [SPEAKER_00] Here's your afternoon TNB Tech Minute for Wednesday, June 24th. I'm Julie Chang for The Wall Street Journal. OpenAI and Broadcom have joined forces to develop a custom AI chip for large language model inference. The chip, dubbed Jalapeno, was built from scratch to improve efficiency and lower costs for serving AI systems at scale. OpenAI and Broadcom didn't disclose specific performance measures, but said a more detailed report will be available in the coming months.

[00:00:45] [SPEAKER_00] The project is part of OpenAI's strategy to reduce reliance on external hardware suppliers and optimize infrastructure for its growing AI services. Broadcom said the project represents the start of a multi-generation collaboration aimed at building large-scale AI infrastructure. Qualcomm has agreed to acquire AI software company Modular in a $3.9 billion stock deal.

[00:01:12] [SPEAKER_00] The acquisition is an effort to make AI faster and cheaper for the semiconductor company's customers. Modular makes software that allows AI to run efficiently across hardware architectures, enabling developers to deploy AI at a lower cost. Qualcomm said it aims to help customers move AI into production from device to cloud more quickly. The deal is expected to close in the second half of this year.

[00:01:37] [SPEAKER_00] And Amazon subsidiary Zoox debuted a redesigned robo-taxi today, optimized for mass production. While retaining its carriage-style cabin, the update includes a lighter interior palette, refined exterior to differentiate the vehicle's front from the rear, and a new speaker and microphone in the door interface. Zoox plans to begin large-scale manufacturing at its Hayward, California plant soon and expects it'll become available to riders later this year.

[00:02:06] [SPEAKER_00] Pending regulatory approval, the company said production could reach 100 vehicles weekly to facilitate this year's expansion. And that's your T&B Tech Minutes. Check back in the morning for another Quick Tech Update.

[00:02:19] [SPEAKER_02] Scaling AI successfully requires more than the right technology. Here again is Caroline Roach, Senior Partner, IBM Consulting.

[00:02:26] [SPEAKER_01] The biggest thing that we were talking about a year ago is what model to use. And the biggest thing that I'm talking about with my clients now is how do I drive change within my organization.

[00:02:38] [SPEAKER_02] Companies able to identify, correct, and then avoid misalignment will be best positioned to deliver meaningful business value from AI.

[00:02:44] [SPEAKER_01] The organizations that are the most successful set very clear targets and have several priorities that are very clear across the enterprise. The technology is really good, but if you're not changing your organizational alignment, not incentivizing your people correctly, not looking at workflows, you're not going to see real value with it.

[00:03:05] [SPEAKER_02] Visit IBM.com slash think slash leadership to learn how building organizational alignment can help deliver AI deployments that scale and drive growth.

[00:03:13] [SPEAKER_00] This content was created by custom content from WSJ, a unit of the Wall Street Journal Advertising Department.