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**OpenAI** announced benchmark results for its custom inference chip **Jalapeño**, showing **1.5–1.9×** better efficiency and **1.7–3.6×** lower latency compared to NVIDIA **GB200/GB300**. Deployment starts by year-end with **Gen 2** and **Gen 3** in development. The chip runs at **700W** but stayed below **550W** in tests. Model-assisted kernel optimization using **GPT-Astra + Codex** improved performance by **1.5–1.8×**. This signals a shift in inference stack economics, potentially reducing NVIDIA's dominance. Additionally, research on agent harnesses like **AutoSaddler** shows system-level improvements can surpass model changes, with significant gains on benchmarks like **GAIA2** and **SWE-Bench Pro**. A new **Harness Card** standard is proposed to disclose harness variance, highlighting the importance of software engineering in AI agent performance.
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