Cerebras signs a $10 billion deal with OpenAI, to supply 750 megawatts of computing power ++

Staff Reporter: PNN

Artificial intelligence company OpenAI announced on Wednesday that it has reached a multi-year agreement with chip manufacturer Cerebras. Under the agreement, Cerebras will supply OpenAI with 750 megawatts of computing power from the beginning of this year through 2028.

A source cited by TechCrunch said the total value of the deal exceeds $10 billion. Reuters has also confirmed the size of the agreement.

Both companies stated that the primary objective of this deal is to ensure faster results for OpenAI’s customers. In a blog post, OpenAI said, “These new systems will speed up the processing of tasks that currently take longer.” Cerebras co-founder and Chief Executive Officer Andrew Feldman said, “Just as broadband transformed the internet, real-time inference will transform artificial intelligence.”

Cerebras has been active for more than a decade, but its importance has grown significantly since the launch of ChatGPT in 2022 and the subsequent rise of artificial intelligence. The company claims that systems built using its chips are much faster than GPU-based systems.

Cerebras had planned an initial public offering (IPO) in 2024, but it has been postponed several times. In the meantime, the company has continued to raise large amounts of funding. It was recently reported that Cerebras is in talks to raise an additional $1 billion, with a valuation of approximately $12 billion. Notably, OpenAI CEO Sam Altman is already an investor in the company.

OpenAI executive Sachin Katti said, “Our compute strategy is to build a stable portfolio that matches the right systems to the right tasks. Cerebras is adding a unique low-latency inference solution to our platform. This will create a strong foundation for faster responses, more natural interactions, and the expansion of real-time artificial intelligence to a much larger number of people.”

This agreement will significantly enhance OpenAI’s capabilities and set a new benchmark for speed in the field of artificial intelligence.