Cerebras scores OpenAI deal worth over $10 billion ahead of AI chipmaker's IPO

Cerebras, an innovative player in the AI chip market, has secured a monumental agreement with OpenAI to supply a staggering 750 megawatts of computing power through 2028. This partnership, announced in a blog post by OpenAI, is valued at over $10 billion, according to sources familiar with the arrangement. This deal is a strategic move for Cerebras, helping the company diversify its revenue streams beyond its primary partner, G42 in the UAE, which accounted for a significant 87% of its earnings in the first half of 2024. Known for developing a powerful processor capable of training and executing generative AI models, Cerebras is emerging as a formidable competitor to Nvidia, a dominant force in the AI chip space. Nvidia recently made headlines by becoming the first company to reach a $5 trillion market cap, driven by soaring investor interest in AI technologies. Meanwhile, Cerebras’ rival, Groq, revealed that Nvidia had entered into a non-exclusive licensing agreement that would facilitate the transition of some employees to its ranks, despite Groq's cloud service remaining outside the scope of the deal. OpenAI's Sachin Katti highlighted the significance of the collaboration with Cerebras, stating that it introduces a dedicated low-latency inference solution to their platform, which is crucial for enhancing response times and enabling more natural interactions. This partnership also follows OpenAI's recent capability allowing users to test its gpt-oss open-weight models on Cerebras hardware as well as AMD and Nvidia chips. In September 2024, Cerebras filed for an IPO, indicating a revenue increase to nearly $70 million in Q2 of 2024, up from about $6 million in the same quarter the previous year. However, the company also reported an escalated net loss of almost $51 million, up from $26 million a year earlier. Notably, traditional investment banks associated with major tech IPOs were absent from the prospectus, and Cerebras opted for an auditor outside the typical Big Four firms. Shortly after filing, the company withdrew its paperwork, citing the need to update it following a significant $1.1 billion funding round that valued the firm at $8.1 billion. Cerebras' co-founder and CEO Andrew Feldman indicated that the withdrawal was a strategic decision to provide a more current overview of the business in light of its recent improvements. He expressed an intention to re-file with revised financials and strategies to adapt to the fast-paced AI landscape. Cerebras boasts an impressive client roster that includes Cognition, Hugging Face, IBM, and Nasdaq. Moreover, in March 2025, the company announced that the Committee on Foreign Investment in the United States had approved its request to sell shares to G42, further solidifying its market position. Reports from The Wall Street Journal have also spotlighted this transformative deal.