OpenAI signs $10 billion deal with Nvidia rival Cerebras
OpenAI will purchase up to 750 megawatts of computing power over three years from chip manufacturer Cerebras.
OpenAI will purchase up to 750 megawatts of computing power over three years from chip manufacturer Cerebras.
The two companies announced the deal on Wednesday. Reuters sources say the deal is worth more than $10 billion over the entire term of the contract.
Cerebras CEO Andrew Feldman noted that talks between the companies began last August — after Cerebras demonstrated that open-source OpenAI models run more efficiently on its chips than on traditional GPUs.
After months of negotiations, the parties reached an agreement under which Cerebras will provide OpenAI with cloud services based on its own chips. The main focus will be on logical inference and reasoning models, which usually require time to think before generating an answer.
Under the terms of the agreement, Cerebras will build or lease data centers equipped with its own chips, while OpenAI will pay for the use of Cerebras' cloud services to perform inference operations in its artificial intelligence products. The announced capacities will be put into operation in several stages up to and including 2028.
“The introduction of Cerebras technologies into our computing system is aimed at making our artificial intelligence responses significantly faster,” OpenAI said.
Founded in 2015, Cerebras is known for its massive Wafer Scale Engine processors. These chips are designed specifically to accelerate the training and inference of large AI models, allowing the company to compete with offerings from Nvidia and other chip makers. Sam Altman, CEO of OpenAI, is an early investor in Cerebras.
Recall that OpenAI plans to increase electricity consumption by 125 times over the next eight years. That's more than India's entire power grid produces, and far exceeds the capacity of countries like Germany or the United Kingdom.
The company, together with partners, is also developing a large-scale data center project, Stargate, which can consume up to 40% of the world's DRAM production.
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