OpenAI has entered into a multi-year agreement with Cerebras, an AI chipmaker, to secure 750 megawatts of compute power, starting this year and continuing through 2028. A source familiar with the details told TechCrunch that the deal is valued at over $10 billion; Reuters also reported the deal size.
The collaboration aims to accelerate the speed of AI outputs for OpenAI's customers. According to a blog post by OpenAI, the increased compute capacity will reduce processing times for tasks that currently require more time. Both companies emphasized the importance of faster AI inference for improving user experience.
Cerebras CEO Andrew Feldman drew a parallel between the impact of broadband on the internet and the potential of real-time inference to transform AI. "Just as broadband transformed the internet, real-time inference will transform AI," Feldman said.
Cerebras, founded over a decade ago, has seen increased prominence since the launch of ChatGPT in 2022 and the subsequent surge in AI development. The company asserts that its systems, powered by its purpose-built AI chips, offer superior performance compared to GPU-based systems, such as those offered by Nvidia. This claim positions Cerebras as a key player in the competitive landscape of AI hardware.
The company had filed for an IPO in 2024 but has postponed it several times. In the meantime, Cerebras has continued to raise significant capital. On Tuesday, it was reported that the company was in talks.
The deal highlights the increasing demand for compute resources in the AI industry, as companies race to develop and deploy more sophisticated models. The partnership between OpenAI and Cerebras signifies a major investment in AI infrastructure and a commitment to pushing the boundaries of AI capabilities.
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