OpenAI’s $10B Deal with Cerebras for AI Compute Power
▼ Summary
– OpenAI has entered a multi-year deal with chipmaker Cerebras, which will supply 750 megawatts of compute capacity starting in 2024 and continuing through 2028.
– The agreement is valued at over $10 billion and aims to deliver faster, real-time AI inference outputs for OpenAI’s customers.
– Cerebras claims its AI-specific chip systems are faster than GPU-based alternatives, such as those from Nvidia, and its prominence has grown significantly since the 2022 AI boom.
– Cerebras has delayed its IPO but continues to raise substantial funds, recently seeking about $1 billion at a $22 billion valuation, with OpenAI’s CEO Sam Altman already an investor.
– OpenAI states this partnership adds a dedicated low-latency inference solution to its compute portfolio, enabling faster responses and more natural interactions to scale real-time AI.
A major new partnership is set to significantly boost the computational power available for artificial intelligence. OpenAI has entered into a multi-year agreement with chipmaker Cerebras, securing a massive commitment of 750 megawatts of dedicated compute capacity. This arrangement, which will run from this year through 2028, represents a strategic investment in the infrastructure needed to power next-generation AI applications. Industry sources indicate the total value of this long-term deal exceeds ten billion dollars, underscoring the immense scale of resources required in the current AI landscape.
The core objective for both companies is to dramatically improve performance for end-users. OpenAI stated that integrating Cerebras systems will accelerate responses for tasks that currently suffer from processing delays. Cerebras CEO Andrew Feldman framed the shift in ambitious terms, suggesting that just as broadband internet revolutionized online access, achieving real-time inference capabilities will fundamentally transform how people interact with and use artificial intelligence.
Cerebras, a company with over ten years of history, has seen its prominence surge alongside the explosive growth of generative AI following ChatGPT’s debut. The firm competes directly with established players like Nvidia by building complete systems around its own specialized AI chips, which it claims deliver superior speed compared to traditional GPU-based alternatives.
This landmark deal arrives at a pivotal moment for Cerebras. The company initially filed for an initial public offering in 2024 but has postponed those plans multiple times. Instead, it has continued to secure substantial private funding. Reports emerged just this week that Cerebras is negotiating to raise an additional billion dollars, which would value the company at approximately twenty-two billion dollars. It is also noteworthy that OpenAI’s chief executive, Sam Altman, is a personal investor in Cerebras, and OpenAI had previously explored the possibility of acquiring the chip designer outright.
For OpenAI, this partnership is a key component of a broader computational strategy. “Our compute strategy is to build a resilient portfolio that matches the right systems to the right workloads,” explained Sachin Katti of OpenAI. “Cerebras adds a dedicated low-latency inference solution to our platform. That means faster responses, more natural interactions, and a stronger foundation to scale real-time AI to many more people.” This move directly addresses the growing demand for instantaneous, conversational AI experiences, positioning OpenAI to meet that need with enhanced infrastructure.
(Source: TechCrunch)
