OpenAI and Cerebras Sign $100 Billion Compute Agreement

OpenAI has entered into a multi-year agreement with AI chip manufacturer Cerebras, announced on Wednesday. The deal, commencing this year, will see Cerebras supply the AI giant with 750 megawatts of computing capacity, extending through 2028.

A source familiar with the matter informed TechCrunch that the transaction is valued at over $10 billion, a figure also reported by Reuters.

The companies stated the partnership aims to deliver faster output for OpenAI's customers. In a blog post, OpenAI indicated these systems will accelerate responses that currently require more processing time. Andrew Feldman, Cerebras co-founder and CEO, likened the impact to how "broadband transformed the internet," suggesting "real-time inference will transform AI."

While Cerebras has operated for over a decade, its profile has risen significantly since the 2022 launch of ChatGPT and the subsequent AI boom. The company asserts its systems, built with chips specifically designed for AI, are faster than GPU-based systems like those from Nvidia.

Cerebras filed for an IPO in 2024 but has postponed it several times since. Concurrently, the firm continues to secure substantial funding. Reports emerged Tuesday that it is in talks to raise an additional $1 billion at a $22 billion valuation. Notably, OpenAI's CEO Sam Altman is already an investor in Cerebras, and OpenAI has previously considered acquiring the company.

"OpenAI's compute strategy involves building a flexible portfolio that can match the right system to the right workload," said OpenAI's Sachin Katti in the company's post. "Cerebras adds a dedicated, low-latency inference solution to our platform. This translates to faster responses, more natural interactions, and a stronger foundation for scaling real-time AI to more people."