OpenAI signs massive AI chip deal with Cerebras | News.az

OpenAI is set to spend more than $20 billion on AI chips from startup Cerebras Systems over the next three years, in a deal that could also give the ChatGPT maker a significant ownership stake in the company, according to a report by The Information.

The agreement highlights the escalating race for computing power in artificial intelligence, as companies invest heavily in infrastructure to train and run increasingly complex models, News.Az reports, citing Reuters.

Under the reported deal, OpenAI will purchase servers powered by Cerebras chips, potentially doubling its previous commitment with the chipmaker. Earlier this year, OpenAI agreed to buy up to 750 megawatts of computing capacity from Cerebras in a deal valued at over $10 billion.

The new agreement could push OpenAI's total spending with Cerebras to as much as $30 billion over three years.

As part of the arrangement, OpenAI is expected to receive warrants that could translate into a minority equity stake in Cerebras -- potentially up to 10% ownership depending on how much it ultimately spends.

The report also said OpenAI could provide around $1 billion to help fund the development of new data centres that will run its AI systems.

Neither OpenAI nor Cerebras commented on the report.

The deal underscores the growing importance of "inference" computing -- the process by which AI models generate responses -- as demand surges for tools like chatbots, copilots and generative AI services.

Cerebras, known for its wafer-scale chip technology, is positioning itself as a challenger to industry leader Nvidia in the high-performance AI hardware space.

The partnership is seen as crucial to Cerebras' plans to go public. The company is reportedly preparing for an IPO as soon as the second quarter and is also seeking to raise about $3 billion at a valuation of roughly $35 billion.

Founded in 2015 and based in California, Cerebras has attracted attention for building some of the largest and most powerful AI chips in the industry.

The potential tie-up with OpenAI signals how leading AI developers are increasingly locking in long-term access to specialised hardware as competition intensifies across the sector.