OpenAI strikes $10 billion deal with chipmaker Cerebras

OpenAI has recently announced that it will purchase up to 750 megawatts of computing power from chipmaker Cerebras in a deal valued at more than $10 billion over its three-year lifespan, as per a Reuters report.

The agreement will see OpenAI use Cerebras' specialised hardware to speed up the process of "inference," where AI models like ChatGPT generate responses to user queries. OpenAI stated that integrating Cerebras's systems is "all about making our AI respond much faster," aiming for more natural, real-time interactions.

Cerebras will build or lease data centres filled with its chips, and OpenAI will pay to use these resources as a cloud service. The capacity will be phased in through 2028.

The deal highlights the massive and growing demand for computing power to run advanced AI models. For Cerebras, which is reportedly preparing for an initial public offering, the partnership diversifies its revenue stream. Sam Altman, CEO of OpenAI, is an early investor in Cerebras, as per a Reuters report on the matter.

The commitment follows OpenAI CEO Sam Altman's previous statement that the company is planning to spend $1.4 trillion to develop vast computing resources. The announcement comes amid broader industry concerns about a potential bubble in AI investment.