OpenAI has entered into a multi-year agreement with Cerebras, an AI chipmaker, to secure a substantial amount of computing power. The deal, valued at over $10 billion, will provide OpenAI with 750 megawatts of compute starting this year and continuing through 2028, according to a source familiar with the details, as reported by TechCrunch and Reuters.
The collaboration aims to accelerate the speed at which OpenAI delivers outputs to its customers. In a blog post, OpenAI stated that the new systems would reduce processing times for requests that currently require more time. Both companies emphasized the importance of faster outputs for OpenAI's users.
Andrew Feldman, co-founder and CEO of Cerebras, 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 attention since the launch of ChatGPT in 2022 and the subsequent surge in AI development. The company asserts that its systems, which utilize chips specifically designed for AI tasks, outperform GPU-based systems, such as those offered by Nvidia. These claims have not been independently verified.
The company's technology centers around the Wafer Scale Engine (WSE), a single silicon wafer containing thousands of interconnected processors. This architecture is designed to accelerate AI workloads by minimizing communication bottlenecks between processors.
The demand for computing power in AI is driven by the increasing complexity of AI models. Training these models requires vast amounts of data and computational resources. Inference, the process of using a trained model to make predictions, also benefits from faster processing speeds, particularly for applications requiring real-time responses.
Cerebras filed for an initial public offering (IPO) in 2024 but has since postponed it multiple times. In the interim, the company has continued to raise significant capital. It was reported on Tuesday that the company was in talks.
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