OpenAI strikes $10 billion deal with Cerebras to expand compute power

ChatGPT maker on Wednesday announced that it has struck a multi-year deal with AI chipmaker Cerebras in a bid to procure 750 megawatts of computing power to the AI giant.

Under this deal, valued at over $10 billion, the provision of compute power to OpenAI will begin this year and continue through 2028, according to Cerebras, Reuters reported, citing a source familiar with the details.

Both parties confirmed that the agreement would deliver faster outputs for OpenAI’s customers.

As highlighted in an OpenAI blog post, these systems would accelerate responses that currently consume more processing time.

Andrew Feldman, co-founder and CEO of Cerebras, stated: “Just as broadband transformed the internet, real-time inference will transform AI.”

While Cerebras has been operational for over a decade, its prominence skyrocketed following the launch of ChatGPT in 2022 and the subsequent AI boom.

The AI firm claims its systems, equipped with dedicated AI chips, are faster than traditional GPU-backed systems, such as those offered by Nvidia.

Cerebras filed for an IPO in 2024 but then postponed it multiple times, while continuing to secure substantial funding. Reports indicate that it is in talks to raise another billion dollars at a valuation of $22 billion.

The noteworthy point here is that OpenAI CEO Sam Altman is an investor in Cerebras, and the GPT developer previously considered acquiring the company.