OpenAI Expands Partnership With Cerebras in Major AI Push
OpenAI has agreed to pay chip startup Cerebras more than $20 billion over the next three years to use servers powered by the company’s chips. The agreement could also grant OpenAI an equity stake in the firm, according to a report citing sources familiar with the matter.
The development reflects OpenAI’s effort to strengthen its position in the artificial intelligence race while meeting rapidly rising demand. Earlier in January, the company committed to purchasing up to 750 megawatts of computing capacity from Cerebras over three years in a deal valued at more than $10 billion. However, the latest commitment significantly expands that arrangement, effectively doubling its scale.
Although the report outlines substantial financial commitments, Reuters has not independently verified the details. OpenAI did not respond to requests for comment outside regular business hours, while Cerebras declined to provide any statement on the matter.
Rising Demand Drives Computing Expansion
The agreement underlines the increasing need for computing power across the AI industry. In particular, demand for inference capabilities continues to grow. Inference refers to the process by which trained AI models generate responses, making it a crucial component of real-world AI deployment.
As a result, companies are investing heavily in infrastructure to support these operations. OpenAI’s expanded commitment to Cerebras signals a strategic move to secure long-term access to specialised hardware designed for high-performance AI workloads.
Furthermore, the report indicates that Cerebras may disclose elements of its previously undisclosed arrangement with OpenAI as soon as Friday. This potential disclosure could offer further clarity on the scope and structure of the partnership.
Investment Structure and Ownership Potential
Under the terms of the deal, OpenAI is expected to receive warrants for a minority stake in Cerebras. Notably, this ownership stake could increase as OpenAI’s spending grows over time. In addition, OpenAI has reportedly agreed to provide approximately $1 billion to support the development of data centres that will run its AI products.
Consequently, OpenAI’s total spending over the next three years could reach as much as $30 billion. This level of investment may translate into warrants representing up to a 10 percent stake in Cerebras, further deepening the relationship between the two companies.
Cerebras Eyes Public Listing Amid Deal
The partnership plays a central role in Cerebras’ plans to go public. The company is targeting an initial public offering in the second quarter of this year, positioning the OpenAI deal as a key pillar of its growth strategy.
Based in Sunnyvale, California, Cerebras was last valued at $23.1 billion. Moreover, it plans to raise $3 billion in an upcoming offering next month, aiming for a valuation of approximately $35 billion.
Founded in 2015, Cerebras is known for its wafer-scale engine chips and competes with other AI chipmakers in a rapidly evolving market. Its collaboration with OpenAI highlights both the scale of demand for AI infrastructure and the strategic partnerships shaping the industry’s future.
With inputs from Reuters