OpenAI has inked a deal with artificial intelligence (AI) chipmaker Cerebras Systems to procure 750 megawatts of computing power through 2028.
The partnership builds on an earlier collaboration to support the smooth deployment of its gpt-oss open-weight models on Cerebras hardware, alongside chips from Nvidia Corp (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD).
Although financial details of the deal were not disclosed, it could be worth over $10 billion, according to CNBC. The deal would also broaden Cerebras’ revenue base, which had been heavily dependent on the UAE’s G42, representing 87% of the company’s revenue in the first half of 2024.
OpenAI and Cerebras did not immediately respond to Benzinga‘s requests for comment.
Cerebras’ co-founder and CEO, Andrew Feldman, told the publication that the way to build three very large customers is to start with one, keep them happy, and then win the second.
Cerebras’ IPO Plans; OpenAI expands AI
Cerebras had shelved its IPO plans in October, despite reaching an $8 billion valuation. The company did not provide a reason for scrapping the public issue plan but only stated that it isn’t going ahead “at this time.” However, according to Kalshi traders, odds are high that the Nvidia rival would announce an IPO before next year.
According to a Bloomberg report earlier this week, Cerebras Systems is seeking to raise around $1 billion in a funding round, which would value the AI chip maker at $22 billion pre-investment.
Meanwhile, OpenAI has been making strategic moves to bolster its AI capabilities, including the recent acquisition of healthcare technology startup Torch, indicating the company’s commitment to expanding its AI solutions across various sectors.
Earlier this month, SB Energy, part of SoftBank Group, partnered with OpenAI to become a key development and execution partner for its data center campuses.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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