The AI race is shifting from who builds the smartest software to who controls the actual infrastructure, and Washington wants a front-row seat. OpenAI is building a vertically integrated empire, teaming up with Broadcom and Celestica to build Jalapeño. This is a custom inference chip designed using OpenAI’s own models to optimize memory bandwidth and slash data bottlenecks in massive data centers. 

On the software side, OpenAI is rolling out an upgrade to GPT-5.5 Instant focused on long-context usability, sending engineers into businesses through its DeployCo subsidiary, and testing a peer-to-peer credit economy on Codex, which just passed four million weekly users. 

This expansion comes right as OpenAI’s own staff goes all-in on automation. According to the company’s new Economic Research paper, employee use of Codex systems exploded between November 2025 and June 2026. Median token usage skyrocketed 56-fold in Research, 32-fold in Customer Support, and 27-fold in Engineering. This sudden pivot toward “tokenmaxxing” shows employees are heavily relying on AI for research synthesis and legal analysis, even though they have had unlimited model access for years.

But the federal government is throwing a wrench into the rollout schedule. The Trump administration just forced OpenAI to stall the release of GPT-5.6 over security concerns, shifting it to a limited enterprise preview where federal agencies vet buyers case by case. This follows even harsher restrictions that blocked foreign nationals from accessing Anthropic’s Mythos 5 and Fable 5 models.