OpenAI signs $20B deal with chip start-up Cerebras

In January, OpenAI had agreed to buy up to 750 megawatts (MW) of computing capacity from Cerebras over three years. The deal was worth more than $10 billion. However, the latest commitments exceed this earlier agreement with the chipmaker.

As part of the deal, OpenAI will get warrants for a minority stake in Cerebras. Its ownership could increase as its spending rises. The report also said that OpenAI has agreed to give Cerebras about $1 billion to help fund the development of data centers that would run its AI products.

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The deal between OpenAI and Cerebras underscores a growing demand for computing power to run inference, the process by which AI models generate responses. This comes as companies race to develop reasoning models and applications aimed at driving wider adoption of AI technology.