OpenAI is set to spend $20 billion over the next three years to use servers powered by Cerebras’s chips in a deal that could also give the AI company a stake in the firm, The Information reported Thursday.
The news comes as AI developers are struggling to meet growing demand for compute power and increasingly looking for ways to reduce their dependence on Nvidia-powered server stacks.
In January, OpenAI committed to a three-year deal with the chip manufacturing start-up for 750 megawatts of compute, valued at around $10 billion, meaning the new commitments would more than double the ChatGPT creator’s exposure to Cerebras.
The report said that Cerebras could disclose parts of the previously undisclosed arrangement later today.
The deal may also entitle OpenAI to warrants for a minority stake in the manufacturer, with ownership rising as spend increases, according to The Information. Its total spend could reach $30 billion in the next three years, translating to warrants worth around 10 per cent of the company, the report added.
In addition, OpenAI is set to spend $1 billion to help Cerebras fund the development of data centres to run its AI products, according to the report.
Cerebras is also preparing to attempt an Initial Public Offering (IPO) and could file the paperwork as soon as Friday, The Information reported. The chip developer is reportedly targeting a valuation upwards of $35 billion, a 60 per cent premium on its last private valuation of $22 billion in February. It aims to raise $3 billion at IPO.
