This radical move gives Cerebras Systems, a leader in AI computing, the power of invention with a transformative multi-year agreement with OpenAI. This agreement is worth more than $10 billion. This collaboration will provide OpenAI with an unparalleled 750 megawatts of computing power. The deal will bolster Cerebras’ presence in the rapidly evolving landscape of artificial intelligence. This agreement contains the intention to increase AI processing capabilities. It will bring about quicker turnaround times for advanced queries and firm up their joint development that continues through 2028.
We note that Cerebras recently raised $1 billion in new capital. That major infusion raises its valuation to $23 billion. This new funding is a stunning jump from its last valuation of $8.1 billion only six months ago. Cerebras’ long-time backer Benchmark Capital led the latest funding round. They really did invest—at least their end of it—with at least $225 million. Benchmark Capital’s involvement traces back to 2016 when it spearheaded Cerebras’ $27 million Series A funding round.
Cerebras’ valuation has tripled. This increase is primarily powered by its revolutionary technology, which uses a single chip crafted from nearly an entire 300-millimeter silicon wafer. This architecture boasts 900,000 specialized cores that work in parallel, allowing the system to process AI calculations more efficiently than traditional multi-chip setups. Cerebras claims that its systems can do AI inference tasks more than 20 times faster than the competition. This does not exclude solutions offered by Nvidia.
This has positioned Cerebras, a private company, as an increasingly vital partner for AI companies seeking to harness tremendous computing power. As of H1 2024, G42—which is UAE-based and one of the largest AI firms in the EMEA region—accounted for 87% of Cerebras’ revenue. The relationship came under severe pressure, with Cerebras cutting G42 from its investor roster by late 2023. A national security review by the Committee on Foreign Investment in the United States spurred this decision. This reality created headwinds for Cerebras in its path to public companyhood.
This partnership with OpenAI will help make our internal AI operations more efficient. That translates into faster content processing and overall improved website performance for the end-user! By offering Cerebras Exceptionally Powerful Computation, Cerebras hopes to help OpenAI achieve better outcomes on increasingly complex AI-driven tasks. The partnership certainly demonstrates that there is an increasing demand for high performance computing solutions. This demand is warranted, primarily due to the complexity and pervasiveness of artificial intelligence applications that exist today.
Cerebras’ groundbreaking developments in chip technology combined with its advantageous partnerships with leading companies make it a major force in the current AI revolution. It stays ahead of the competition and continues to dominate its space as a market leader. This success reminds us of the crucial role of innovation in our tech industry. As AI continues to evolve, partnerships like those with OpenAI are likely to shape the future landscape of machine learning and data processing.
