OpenAI signs deal, worth $10 billion, for compute from Cerebras

In a significant move for the AI industry, OpenAI has entered into a multi-year deal with Cerebras, a renowned AI chip manufacturer. This partnership will see Cerebras providing an impressive 750 megawatts of computing power to OpenAI, commencing this year and extending until 2028. According to sources familiar with the arrangement, the deal's value exceeds $10 billion, a figure confirmed by multiple reports. Both companies emphasized that this collaboration aims to enhance the speed of service delivery for OpenAI’s users. In a recent blog post, OpenAI highlighted that the new systems will significantly reduce processing times for responses that currently take longer to compute. Andrew Feldman, co-founder and CEO of Cerebras, drew a parallel between the evolution of broadband and the anticipated transformation of AI through real-time inference, stating, "Just as broadband transformed the internet, real-time inference will transform AI." Cerebras, which has been operational for over a decade, has gained prominence following the surge in AI interest spurred by the launch of ChatGPT in 2022. The company asserts that its AI-optimized chips outperform traditional GPU systems, such as those produced by Nvidia. Although Cerebras initially planned to go public in 2024, the IPO has faced several delays. Despite this, the company has continued to secure substantial funding, with reports indicating ongoing discussions to raise an additional billion dollars at a valuation of $22 billion. Notably, OpenAI’s CEO, Sam Altman, is already an investor in Cerebras, and OpenAI had previously contemplated an acquisition of the firm. Sachin Katti from OpenAI remarked, "OpenAI’s compute strategy is to build a resilient portfolio that matches the right systems to the right workloads. Cerebras adds a dedicated low-latency inference solution to our platform, resulting in faster responses and more natural interactions, ultimately laying a stronger foundation for scaling real-time AI services to a broader audience."