OpenAI Signs $10 Billion Deal With Cerebras for AI Computing

Tiger Newspress
01/15

OpenAI signed a multiyear deal to use hardware from Cerebras Systems Inc. for 750 megawatts’ worth of computing power, an alliance that will support the company’s rapid build-out of AI infrastructure.

OpenAI will use Cerebras as a supplier of computing to get faster response times when running AI models, according to a joint statement Wednesday. The infrastructure will be built in multiple stages “through 2028” and hosted by Cerebras, the companies said. Though terms weren’t disclosed, people familiar with the matter put the size of the deal at more than $10 billion.

“This partnership will make ChatGPT not just the most capable but also the fastest AI platform in the world,” said Greg Brockman, OpenAI co-founder and president. This speed will help unlock “the next generation of use cases and onboard the next billion users to AI,” he said.

Cerebras, a semiconductor startup, has pioneered a unique approach to processing information using huge chips. It’s seeking widespread adoption of its technology in a bid to challenge market leader Nvidia Corp. and also operates data centers to showcase the capabilities of its components and bring in recurring revenue.

High-profile wins like the OpenAI agreement take Cerebras closer to tapping into the tens of billions of dollars being poured into new infrastructure for artificial intelligence computing.

For OpenAI, the pact is just the latest massive data center deal aimed at expanding its computing capacity. It’s part of an unprecedented bet by the technology industry that runaway demand for power-hungry AI tools will continue unabated.

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