OpenAI to Spend more than $ 20 Billion on Cerebras Chips
OpenAI has committed to paying chip startup Cerebras over $20 billion in the upcoming three years for access to servers driven by the company's chips, as per a deal that might also provide the ChatGPT developer with an equity share in the company, according to reports.
The advancement arises as OpenAI seeks to gain an edge in the AI competition and address increasing demand. In January, the firm consented to acquire as much as 750 megawatts of computing power from Cerebras over three years, in an agreement worth over $10 billion.
The commitments disclosed by The Information on Thursday surpass OpenAI's previously reported deal with the chip manufacturer.
Reuters was unable to independently confirm the report. OpenAI did not provide a response to a request for comment beyond typical business hours, whereas Cerebras chose not to comment.
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The agreement underscores the industry's increasing demand for computing power to perform inference—the method through which AI models produce replies—as firms compete to create reasoning models and applications designed to promote broader usage.
Reports suggest that Cerebras, located in Sunnyvale, California, may reveal details of its previously undisclosed deal with OpenAI as early as Friday.
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According to reports, under the agreement, OpenAI will obtain warrants for a small share in Cerebras, with its stake likely growing as its expenditures increase. It noted that OpenAI has also consented to offer Cerebras around $1 billion to assist in financing the construction of data centers that would operate its AI products.
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OpenAI's overall expenditures in the next three years might amount to $30 billion, potentially resulting in warrants that account for up to 10 percent of Cerebras, according to reports.