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OpenAI to spend more than $20 billion on Cerebras chips, receive equity stake, The Information reports
The deal could give OpenAI warrants for up to 10% of Cerebras as the company seeks more computing power for AI inference.
- On Thursday, The Information reported that OpenAI agreed to pay California-based Cerebras more than $20 billion over three years for server access, a deal potentially granting the ChatGPT maker an equity stake in the chip startup.
- These commitments are double the size of OpenAI's previous agreement with Cerebras, which in January involved buying up to 750 megawatts of computing capacity valued at more than $10 billion.
- OpenAI CEO Sam Altman, an early investor in Cerebras, helps direct the arrangement as the chipmaker could receive up to 10 per cent in warrants; OpenAI also agreed to provide about $1 billion for data center development.
- Sunnyvale, California-based Cerebras, last valued at $23.1 billion, plans to raise $3 billion next month at about $35 billion valuation, targeting a public listing in the second quarter of this year.
- The deal reflects the industry's growing appetite for computing power to run AI models, as Cerebras, which was Founded to compete with Nvidia and other chipmakers, deploys wafer-scale engine chips to meet rising demand.
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Sources: OpenAI agrees to pay Cerebras $20B+ to use its server chips, double the amount previously associated with the deal, and may receive equity in Cerebras (The Information)
The Information: Sources: OpenAI agrees to pay Cerebras $20B+ to use its server chips, double the amount previously associated with the deal, and may receive equity in Cerebras — OpenAI recently struck an unusual deal to lessen its dependence on Nvidia's AI chips and potentially lower its…
Coverage Details
Total News Sources15
Leaning Left1Leaning Right3Center5Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
11%
C 56%
R 33%
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