When OpenAI unveiled Jalapeño, its first custom inference chip, in June, the company made some big promises. The chip, developed with Broadcom, was built from scratch for large language model inference, with OpenAI saying early testing showed substantially better performance per watt than existing accelerators. At the time, though, OpenAI didn’t release the detailed performance results to back that up.

On Tuesday, OpenAI published its first results from working Jalapeño silicon across GPT-OSS 120B, DeepSeek R1 and Kimi K2.5. The results show what OpenAI was aiming for with Jalapeño: higher throughput without the longer response times that can come with it.

“Agents need to complete many steps in sequence, so delays can compound across an entire task.”

Agents compound inference delays

An agent may call a model over and over as it works through a task, using tools and deciding what to do next based on the results, which means a delay that barely registers during a single inference can become much more noticeable when it happens repeatedly over the course of a longer task.

“Agents need to complete many steps in sequence, so delays can compound across an entire task,” OpenAI said.

Jalapeño was designed with those delays in mind. Different parts of running a large language model place different demands on the hardware, with the initial prompt requiring more compute and the response generation putting more pressure on memory bandwidth. Every time data has to move between cores and chips, that can add even more waiting.

Jalapeño takes a different approach, cutting down on that waiting without optimizing one part of the process at the expense of another.

“Agents need to complete many steps in sequence so that delays can compound across an entire task,” OpenAI said.

That helps explain some of the choices OpenAI made with Jalapeño. Running a large language model puts different demands on the hardware at different points: processing the initial prompt requires a lot of compute, while generating the response token by token relies more heavily on memory bandwidth. There’s also time lost whenever data has to move between cores and chips, leaving parts of the system waiting for what they need.

The idea is to reduce that waiting without optimizing one part of the process at the expense of another. Model state, including the KV cache used while generating a response, can be kept local, while Jalapeño’s networking allows more of the workload to stay within the same connected system. That means less time spent moving data around as the workload shifts between compute and memory.

Jalapeño’s first public benchmarks

OpenAI put Jalapeño through InferenceX, SemiAnalysis’ public benchmark for AI inference, using GPT-OSS 120B, DeepSeek R1 670B, and Kimi K2.5 1T. Across the three models, Jalapeño handled 1.5 to 1.9 times more work per watt while cutting end-to-end latency by 1.7 to 3.6 times. On highly interactive workloads, OpenAI says it was 2.1 to 4.1 times faster than the systems it compared against. 

The differences become particularly large when Jalapeño is compared at the previous best time-between-tokens operating point. OpenAI reported between 8.6 and 104.3 times more work per watt, depending on the model.

OpenAI based the power-efficiency comparisons on each accelerator’s published power rating. Jalapeño is rated at 700 watts, although the company says it never drew more than 550 watts during these tests. The bigger point is that OpenAI isn’t trying to improve throughput at the expense of response time, which is often the tradeoff with inference. 

Batching more work can make infrastructure more efficient, but it can also mean making an individual user wait longer. OpenAI’s argument with Jalapeño is that an inference system increasingly needs to be good at both — particularly as the company continues cutting the cost of API access while also needing to keep interactive workloads responsive.

The bigger point is that OpenAI isn’t trying to improve throughput at the expense of response time, which is often the tradeoff with inference. 

AI-generated code runs faster

OpenAI used its own models throughout Jalapeño’s development, helping the hardware team move from initial design to tapeout in nine months by exploring implementations and shortening design, measurement, and verification cycles. The work didn’t stop once the chip was built.

The company says AI-generated implementations of selected GPT-OSS attention and mixture-of-experts blocks ran 1.5 to 1.8 times faster than versions written by its own experts. That doesn’t mean the entire model ran that much faster, but it does show what OpenAI is trying to do with Jalapeño: make the chip straightforward enough for AI, not just humans, to program and optimize.

Engineers describe work using local tensors, explicit communication and predictable synchronization, giving AI a way to help determine how that work should be mapped, placed and scheduled across the system. That could make it faster to adapt the chip as new models come along, although OpenAI says each new model family still requires its own kernels and optimizations.

Custom silicon meets model roadmap

Using Codex with GPT-Astra and earlier OpenAI models, the hardware team brought three open-weight models that weren’t part of Jalapeño’s original production plan to high performance within two months. That fits with OpenAI’s broader plans for Codex, which the company has said is still early in its development, and shows how it could eventually play a role well beyond writing code.

OpenAI plans to start using Jalapeño in its own infrastructure by the end of the year, and it’s already working on the next two generations. The company will continue to use accelerators from Nvidia and other partners, but building its own chips gives OpenAI more control over how the hardware evolves alongside its models.

OpenAI plans to start using Jalapeño in its own infrastructure by the end of the year, and it’s already working on the next two generations.

The post OpenAI’s Jalapeño chip tackles a problem AI agents make worse appeared first on The New Stack.

What do you do when a technology you’ve become dependent on belongs to someone else? You buy the startup behind it, of course. And that’s exactly what data warehouse company MotherDuck has done with Tower, a data infrastructure startup whose technology was already powering MotherDuck’s AI-built data pipelines.

The deal, announced on Tuesday, is MotherDuck’s first acquisition in its four-year history, bringing both Tower’s technology and team in-house as MotherDuck pushes further into AI agents that can build and operate data pipelines.

Tower takes flight

Tower was founded out of Germany in late 2024 by ex-Snowflake engineers Serhii Sokolenko (CEO) and Brad Heller (CTO). Their pitch: once a developer, or an AI assistant, has written the code for a data pipeline, someone still has to package it, deploy it to the right infrastructure, wire up credentials, and maintain it — the unglamorous work, Sokolenko told The New Stack back in March, that amounts to data engineering’s “last mile.”

Tower, essentially, is a managed runtime for Python pipelines — it packages the code, deploys it, and keeps it running in production. It also offers tools built on top of that runtime, like the browser-based AI agent Tower Control that allows users to describe the pipeline they want in plain language.

Control can then generate the code, deploy it as a Tower app, and run it — effectively taking the process from prompt to production without the developer having to set up the underlying runtime themselves.

MotherDuck, for its part, is a serverless data warehouse built on the open-source database DuckDB, founded in 2022 by Jordan Tigani, a former engineering lead at Google focused on BigQuery. The company has raised some $100 million since its inception.

MotherDuck’s original pitch leaned on speed and local compute: queries could run on a laptop via DuckDB, in MotherDuck’s cloud, or across both — a departure from the likes of Snowflake, Databricks and BigQuery’s cloud-first model. More recently, MotherDuck has extended that approach to AI agents, using MCP to let agents interact directly with data. And things took a more operational turn in June with the launch of Flights, a feature that exposes a general-purpose Python runtime through the same MCP server, letting agents create, run and schedule data pipelines.

And Tower, as it turns out, was the key infrastructure underpinning Flights.

‘We became their largest customer almost overnight’

Tower’s involvement with MotherDuck actually predates Flights. Tigani says MotherDuck had initially been looking for a third-party tool it could recommend to customers as an easier way to get data into its warehouses. But then advances in AI changed the nature of the problem the company thought it needed to solve.

“When AI suddenly started to be able to solve data problems, we realized we were thinking about the problem wrong.”

“When AI suddenly started to be able to solve data problems, we realized we were thinking about the problem wrong,” Tigani tells The New Stack. “Claude can solve that problem we were trying to address by writing the connectors to help people move their data, but what it can’t do is the sandboxing and scheduling.”

That left MotherDuck needing somewhere to safely execute the code those agents generated, manage credentials and run jobs on a schedule. And as luck would have it, Tower already provided those capabilities.

“It perfectly solved our problem and let us ship Flights in only a matter of weeks,” Tigani adds.

For MotherDuck, Tower had supplied the missing execution layer; for Tower, that realization translated into a significant customer relationship. “We became their largest customer almost overnight, and our teams have been shipping together ever since,” Tigani says.

Having Tower on its radar so early also gave MotherDuck a chance to test the technology — and the team behind it — before deciding whether to build something similar itself. Tigani says the calculation ultimately came down to how quickly MotherDuck could get the capabilities it wanted into customers’ hands.

“It’s always tempting to build yourself, but after trying out Tower, we realized pretty quickly that there were a bunch of problems we were going to have to solve to make our underlying infrastructure actually work well, and Tower was pretty much exactly what we needed,” he says.

Ultimately, the more central Tower became to what MotherDuck wanted to build, the stronger the case became for owning the technology outright. Once Tower was executing jobs created and scheduled inside MotherDuck, Tigani argues, customers would inevitably hold MotherDuck accountable for the security, reliability and behavior of that runtime.

“There’s a rule I’ve relearned at every infrastructure company I’ve worked at: you can rent a feature, but you can’t rent a foundation,” Tigani says. “When an agent inside MotherDuck builds a job and schedules it, the thing executing that job is our product — whatever logo is on it.”

“There’s a rule I’ve relearned at every infrastructure company I’ve worked at: you can rent a feature, but you can’t rent a foundation.”

One example of what MotherDuck now hopes to do with that technology involves bringing Flights together with Dives, an AI-generated data visualization feature it debuted in February. Tower can generate stable URLs for jobs running through Flights, effectively allowing those jobs to act as data APIs that a Dive — or another frontend — can call.

Tigani gives the example of an application displaying user recommendations. A Dive could generate the interface for viewing those recommendations, while a Flight could handle requests to create or modify them. Rather than giving the frontend broad write access to the underlying data, the Flight can constrain and validate what changes users are allowed to make.

“When you put them together, you can build rich applications,” Tigani says.

Tower’s next chapter

All of this raises an obvious question for Tower customers. Part of the startup’s pitch was that developers could use its runtime without tying themselves to a particular data platform, and now Tower itself belongs to one.

Tower co-founder and CEO Serhii Sokolenko argues that MotherDuck represents a different kind of home to that of the industry’s larger cloud data platforms. His case is that Tower can become more deeply integrated without being bent around an architecture established long before AI agents entered the picture.

“Joining a hyperscaler usually means adapting to its legacy architecture,” Sokolenko tells The New Stack. “Joining MotherDuck lets us help shape where data and AI infrastructure are heading.”

“Joining a hyperscaler usually means adapting to its legacy architecture.”

There is still a trade-off, though. Tower is giving up some of the breadth that came with being database-agnostic in exchange for building much more specifically around one platform — a bet that tighter integration will ultimately produce a better experience than supporting many systems at arm’s length.

“By focusing Tower’s Pythonic compute specifically on MotherDuck, we’re trading broad, basic connectivity for deep, native execution,” he says.

Sokolenko’s argument is that the “lock-in” question then shifts down a layer. Tower may now be tied much more closely to MotherDuck, but because MotherDuck itself is built on DuckDB, he says the underlying data remains open and portable. The aim is to bring the runtime, agents and warehouse closer together without trapping the data itself inside a proprietary system.

That also helps explain why MotherDuck’s hybrid execution model appealed to Tower. DuckDB lets work move between local and cloud compute, which Sokolenko sees as closely aligned with Tower’s own direction.

“This directly matches Tower’s vision — allowing business users and agents to move seamlessly from local data exploration to cloud production execution,” he says.

For Tower’s existing customers, the immediate future means a move toward MotherDuck. Sokolenko says Tower customers are already in discussions with MotherDuck about migration paths, while people who have used Tower previously will be invited to try MotherDuck and its broader agentic data capabilities.

Tigani confirms that MotherDuck is working to move existing Tower customers onto Flights, though he concedes that the two products aren’t entirely identical. “There are a couple of differences, and we’re working on closing the gaps to make the transition more seamless,” he says.

Tower’s technology will meanwhile be folded more deeply into MotherDuck itself. Today, MotherDuck has two separate sandboxed, on-demand runtimes: Flights, which is backed by Tower, and Ducklings, its serverless DuckDB instances. Tigani says the plan is eventually to merge the two, combining the near-instant startup of Ducklings with the more robust sandboxing provided by Tower jobs.

Surfing the agent wave

MotherDuck is hardly alone in pushing data agents beyond answering questions. Databricks’ Genie Code can generate and run code, build pipelines and debug failures inside Databricks. Snowflake, meanwhile, has been moving in a similar direction with the likes of CoCo, its AI coding agent, while newer CoCo Automations can schedule unattended agent runs inside Snowflake-managed sandboxes.

The details differ, but both point toward a broader shift in the data industry: giving AI agents the infrastructure to act on data and operate the systems around it, rather than simply query what is already there.

“AI makes it possible to build useful features that we could never fathom five to 10 years ago. The platform is the most complex part of the data estate, and so warehouse vendors are well positioned to be at the center of whatever new patterns emerge.”

Tigani has been predicting something close to this for some time. Earlier this year, he outlined a future in which data engineering increasingly becomes an agent-supervision problem, with agents handling tasks such as building and repairing pipelines and responding to changes in schemas and data quality, while humans oversee their work. He also previously likened the advance of LLMs to a wave that data companies will have to learn to ride.

“The way I like to think about it is this — data platform vendors are reacting to new opportunities to make lives better for their customers,” Tigani says. “AI makes it possible to build useful features that we could never fathom five to 10 years ago. The platform is the most complex part of the data estate, and so warehouse vendors are well positioned to be at the center of whatever new patterns emerge. The Tower acquisition gives us a platform for deploying, tracking, and scheduling data agents, which should set us up well to surf that wave.”

The post “You can rent a feature, but you can’t rent a foundation”: why MotherDuck bought the startup already powering its data pipelines appeared first on The New Stack.

Perplexity is launching Portable Computer today, a version of its agentic "Computer" platform that runs entirely on hardware users already own — starting with Nvidia's DGX Spark desktop supercomputer and Linux machines equipped with Nvidia RTX GPUs.

The launch, developed in close partnership with Nvidia, is one of the most aggressive attempts yet to move serious AI agent workloads off the cloud and onto local devices. The model, the user's files, and the work itself can all stay on the machine. Work completed locally consumes no billing credits, and the company says every task starts on the device by default — with the system asking permission before sending any individual step to a more powerful frontier model in the cloud.

"We've basically brought the exact same UI to a fully local app," said Nate, Perplexity's vice president of engineering for infrastructure and enterprise, during a press briefing Monday. "This incorporates the entirety of the agent harness and inference and everything needed to do work locally."

For Nvidia, which has spent the past two years selling the world on trillion-dollar AI data centers, the announcement signals something subtler but strategically important: the chipmaker believes local AI has crossed a threshold from hobbyist curiosity to practical tool — and it wants to sell the hardware that runs it.

"Local AI reached an inflection point," said Nader, Nvidia's director of developer technology, who focuses on developer tooling and open source. "For the longest time, it was hobbyists and enthusiasts, and they were running these quantized models that were quantized down to be super tiny... And while that's cool, it's not super practical. But all that changed with a lot of these new open source models that have come out that are super useful."

How Portable Computer packages a full local AI stack into a single app

Perplexity Computer, the company's agentic platform for knowledge work, orchestrates AI models, files, tools, and web access to complete multi-step tasks — reviewing folders of documents, analyzing data, producing reports, and pushing results into business systems. Portable Computer replicates that experience locally: the local models, agent harness, inference engine, tools, app connectors, and a security sandbox come packaged together in a single system. That bundling is the point. With most local AI stacks today, users must assemble and operate those pieces separately — downloading model weights, standing up an inference server, wiring together tools, and tuning performance.

"Historically it's just been really painful to bring up the local AI stack," Nate said. "With Portable Computer, we really focused on just making this a really straightforward experience where you can get up and running very quickly."

In one demo Monday, the system played the role of a retail investor reviewing a folder of 1099s and investment documents — the kind of sensitive financial material many users would hesitate to upload to a cloud service. Running a 27-billion-parameter Qwen model at full GPU utilization on a DGX Spark, the agent reviewed each document and flagged cases where the hypothetical investor was paying unnecessary fees. The interface element that normally displays a running tally of cloud credits "is just parked at zero," Nate noted, "because all of this is happening on the device."

A second demo showed the hybrid side of the product. Playing a startup founder, Nate asked the agent to analyze a CSV of user funnel data locally, then push the finished analysis to a Slack channel using Perplexity's connector ecosystem — proof that local-first does not mean disconnected.

The system also connects to Google Drive, Gmail, and GitHub, and can escalate to a frontier cloud model when the local model hits its limits. At launch, users can set up Qwen 3.8 27B or PPLX 27B, a version Perplexity has post-trained on its own harness, with Nvidia's Nemotron 3.5 Lightning coming soon.

Portable Computer arrives today for Pro, Max, Enterprise Pro, and Enterprise Max subscribers on Linux, with Windows support following in September. Any RTX GPU with at least 24GB of VRAM — roughly a GeForce RTX 3090 or newer — clears the bar, a threshold Nate called "sort of the floor where we really want to make sure that we can deliver a great experience, but balance that with making it broadly available."

Why co-designing the model and agent harness beats general-purpose frameworks

Alongside the launch, Perplexity published a research paper arguing that effective local agents require the model and the agent harness — the scaffolding of prompts, tools, and orchestration logic around the model — to be designed together. The core insight: general-purpose harnesses assume a frontier model that can absorb enormous contexts, navigate sprawling tool surfaces, and plan over long horizons. Small local models buckle under those demands.

Perplexity found empirically that although models like Qwen 3.8 27B advertise 260,000-token context windows, they begin to struggle beyond 100,000 tokens. So the company built a deliberately minimal harness: a succinct system prompt, a small set of core tools, and capabilities that load and unload as on-demand "skills" rather than sitting permanently in context. It converted popular connectors like Gmail and GitHub from token-hungry MCP servers into compact command-line tools, added self-verification hooks that monitor the health of a task, and enforced always-on OS-level sandboxing. If the sandbox is unavailable, the harness disables itself rather than running tools unprotected — a contrast with open-source harnesses that run commands with the user's full permissions by default.

The benchmark results Perplexity reports are striking, though they come from the company's own evaluations. On its internal Local Knowledge Work Bench — 53 tasks spanning deep research, financial analysis, and document creation, which Perplexity says it plans to open-source — Computer running Qwen 3.8 27B on a DGX Spark scored 82.6%, versus 77.6% for the open-source Pi harness and 74.0% for Hermes running the identical model. 

Perplexity's post-trained PPLX 27B pushed the score to 85.4%. The gaps widen dramatically on harder tasks: on BrowseComp, a web research benchmark, Computer hit 66.7% accuracy versus 50.2% for Pi and 43.9% for Hermes, while using 51% less wall time and 70% fewer tokens than Pi. On multimodal document understanding, Computer scored 65.1% against Hermes' 34.6% and Pi's 13.9%.

The token economics driving AI agents from the cloud to local hardware

The strategic logic behind the launch becomes clear when you consider how AI workloads have changed. Chat was bursty — a question, an answer, done. Agents are different.

"With agents, you want these agents always on if you can. You want the agents to really consume as many tokens as they can," Nader said. "What we're seeing is an insatiable demand for tokens, and that's something that makes local AI so great. As you saw through all these demos, you were not metered by the token. You were not paying for the token. So it's really killer for agents."

This reframes the value proposition of local hardware. An agent that runs for hours reviewing documents, verifying its own work, and iterating on analyses would rack up substantial API bills in the cloud. On a device the user already owns, the marginal cost of those tokens approaches zero. Perplexity's paper makes the enterprise version of this argument explicitly: as agents scale across individual workflows and entire organizations, token expenditure and data movement "become increasingly difficult to govern." Local-first execution addresses both at once — spend, because inference is free, and privacy, because sensitive tokens never leave the device boundary.

Perhaps the most commercially interesting result concerns the hybrid middle ground. On Terminal Bench 2.1, a challenging coding benchmark, the fully local Qwen model scored 59.6% at essentially zero marginal cost. Letting it escalate to a Claude Opus 5 "advisor" in the cloud raised the score to 73.0% at an estimated $0.415 per task. Running the frontier model alone scored 82.4% at $0.65 per task. Escalation, in other words, recovered roughly three-fifths of the gap to frontier performance at about two-thirds of the cost — and the user decides when that trade is worth making. Before any advisor call, the harness runs a PII classifier over the outgoing context and shows the user exactly what would leave the device. The remote model returns text guidance only; it never touches local files or tools.

Where Portable Computer fits against Ollama and the DIY local AI stack

Jason Hiner of The Deep View pressed the companies on how Portable Computer relates to existing local inference tools like Ollama. Nate's answer drew a clear line: the tools solve different layers of the problem.

"The majority of the effort here has been at the agent harness level," he said, noting that the system uses vLLM to host model inference underneath, with an advanced mode for users who want to plug in their own inference endpoint. "We've heavily post-trained both the Qwen and Nemotron models that we're working with in order to really get the best possible results... Our focus has been on really honing the whole stack, top to bottom, of the model inference and the harness together."

Nader put it more colorfully. "Just getting inference running really quickly on a Spark — there's a smooth path. You can use Ollama. You can get that set up. But then, as you start to do more complicated, more agentic things, then suddenly you need more perf. You start looking at different models. You start looking at different harnesses, and it's kind of like the ocean. The deeper you go, the deeper it gets."

The appliance-like pitch appeared to land with at least one attendee. Ben, who described struggling to set up his own DGX Spark despite being an engineer — "this experience sucks, we have to fix it" — said the product feels like the unlock "needed for people to really feel and understand what agentic means, and you need the right UX to make it happen." Nvidia also emphasized that the hardware scales: connecting two Sparks over shared memory runs frontier-class open models like DeepSeek's latest, and four can run GLM 5.2 or Nemotron Ultra. "I've even seen eight Sparks get connected," Nader said.

What the deepening Nvidia-Perplexity alliance means for both companies

The launch extends a partnership that has been building for more than a year. In June 2025, Nvidia and Perplexity announced a collaboration to bring sovereign AI models to European publishers and telecoms, part of CEO Jensen Huang's continent-hopping campaign to convince governments that, as the Associated Press reported from VivaTech in Paris, "every country needs a national intelligence infrastructure." The sovereign AI pitch — that data "belongs to your people, your country, your culture," in Huang's words — is philosophically the same argument Portable Computer makes at the scale of a single desk: intelligence you control, running on hardware you own.

There is a self-interested logic for both companies. Perplexity, which has raised capital at steadily escalating valuations while facing legal pressure from publishers over its content practices — including a lawsuit filed by The New York Times in December 2025 and an earlier public dispute with Forbes — gets a product whose economics don't depend on metering every token, and a differentiated wedge into privacy-sensitive enterprises in law, healthcare, and finance. Nvidia gets a killer app for DGX Spark, a device that, by the admission of attendees at Monday's briefing, has been easier to buy than to use. When one reporter asked whether a Spark might ship with Portable Computer and a Nemotron model preinstalled, Nader demurred without ruling it out: "That would be cool... the goal is just making sure that it's a super smooth experience for every user."

Questions remain. Perplexity's most impressive numbers come from its own internal benchmark, and the company acknowledges that compact models still trail the frontier meaningfully on hard reasoning tasks — advisor escalation "narrows but does not fully close the gap." The launch is Linux-only for now, the 24GB VRAM floor excludes the vast majority of consumer PCs, and Apple silicon — home to some of the most enthusiastic local AI tinkerers — is conspicuously absent from the roadmap. "We're very focused right now on Nvidia hardware," Nate said when asked.

But the direction of travel is unmistakable. Perplexity's researchers describe the launch as part of "a broader shift in which increasingly capable agents move from remote infrastructure to individual and local devices," and both companies are betting that advances in chips and open models will keep expanding what a box on a desk can do. During Monday's demos, the most telling detail wasn't a benchmark score — it was that credit counter in the corner of the screen, sitting motionless at zero while the agent churned through a folder of tax documents. For two years, the AI industry has measured its ambitions in gigawatts and tokens per dollar. Portable Computer proposes a different meter, one that never runs.