Cerebras scores OpenAI deal worth over $10 billion ahead of AI chipmaker's IPO

Andrew Feldman, co-founder and CEO of Cerebras Systems, speaks at the Raise summit in Paris on July 8, 2025. The annual conference gathers global leaders and key speakers in tech and AI.

Nathan Laine | Bloomberg | Getty Images

AI chipmaker Cerebras has signed a deal with OpenAI to deliver 750 megawatts of computing power through 2028, according to a blog post Wednesday by the maker of ChatGPT.

The arrangement is worth over $10 billion, according to people close to the company.

The deal will help diversify Cerebras away from the United Arab Emirates’ G42, which accounted for 87% of revenue in the first half of 2024.

Cerebras has built a large processor that can train and run generative artificial intelligence models. That makes it a challenger to Nvidia, which sells large quantities of its chips to cloud providers such as Amazon and Microsoft — those companies then rent the graphics cards to clients by the hour. Nvidia became the first company to reach a $5 trillion market capitalization in October, as investors sought to capitalize on further AI growth.

In December, Cerebras rival Groq said Nvidia had signed a non-exclusive licensing agreement that would result in some employees moving to Nvidia. Groq’s cloud service is not part of the deal, which CNBC reported is worth $20 billion in cash, making it Nvidia’s largest transaction to date.

“Cerebras adds a dedicated low-latency inference solution to our platform,” Sachin Katti, who works on compute infrastructure at OpenAI, wrote in the blog. “That means faster responses, more natural interactions, and a stronger foundation to scale real-time AI to many more people.”

The deal comes months after OpenAI worked with Cerebras to ensure that its gpt-oss open-weight models would work smoothly on Cerebras silicon, alongside chips from Nvidia and Advanced Micro Devices.

Cerebras filed for an initial public offering in September 2024, revealing that revenue in the second quarter of that year approached $70 million, up from about $6 million in the second quarter of 2023. The company’s net loss swelled to almost $51 million, from $26 million a year earlier.

Investment banks that typically participate in the top technology IPOs were missing from the prospectus, and the company used an auditor other than the so-called Big Four accounting firms.

Cerebras withdrew the paperwork in October, days after announcing a $1.1 billion round of funding that valued it at $8.1 billion. The company said it pulled the prospectus because details were out of date.

“Given that the business has improved in meaningful ways we decided to withdraw so that we can re-file with updated financials, strategy information including our approach to the rapidly changing AI landscape,” Cerebras’ co-founder and CEO Andrew Feldman wrote in a LinkedIn post. A revised filing will provide a better explanation of the business to potential investors, he wrote.

Cerebras’ customer list includes Cognition, Hugging Face, IBM and Nasdaq, and in March 2025, the company said the Committee on Foreign Investment in the United States had approved Cerebras’ request to sell shares to G42.

The Wall Street Journal reported on the deal earlier on Wednesday.

WATCH: ‘It’s a good time to be in AI hardware,’ says Cerebras Systems CEO Andrew Feldman

Source link