OpenAI has agreed to buy up to 750 megawatts of computing power from chipmaker Cerebras Systems over the next three years. The deal, valued at more than $10 billion, is among the largest infrastructure contracts in the AI industry to date. OpenAI plans to use Cerebras’ technology to help run its AI products, including ChatGPT, and to make responses faster and more efficient.
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The agreement is part of OpenAI’s wider effort to expand its computing capacity as demand for AI tools continues to grow. Cerebras will build or lease new data centers that will host its chips, while OpenAI will pay to use the systems through 2028. Talks between the two companies began last August, after Cerebras showed that OpenAI’s open-source models could run more efficiently on its hardware than on traditional graphics processing units.
Moving Beyond Nvidia
The partnership also signals a shift for OpenAI as it looks to diversify beyond Nvidia (NVDA), whose chips currently dominate the AI market. Cerebras makes large wafer-scale processors that can handle big AI tasks without needing thousands of smaller chips working together. This approach could help OpenAI reduce costs and lower delays when users interact with its AI tools. OpenAI said the goal is to make its models “respond much faster.”
At the same time, the deal gives Cerebras a major customer ahead of its planned IPO. The company has been preparing for an initial public offering that could take place later this year or in early 2027. The new contract provides clear revenue visibility and helps Cerebras reduce its dependence on G42, a tech group based in the United Arab Emirates that has been one of its main clients.
The Broader Market Impact
The agreement reflects the rising importance of computing power as AI adoption accelerates across industries. Analysts say the 750-megawatt capacity that OpenAI will secure is comparable to several large data centers combined. This move could help OpenAI handle the growing costs tied to running complex AI systems. Chief Executive Sam Altman has said that OpenAI may invest up to $1.4 trillion to build 30 gigawatts of computing power in the years ahead.
Furthermore, the deal highlights new competition in the AI chip market. It could increase attention on Cerebras ahead of its listing, while also raising questions about how much Nvidia can continue to dominate the space. Other companies such as Advanced Micro Devices (AMD) and Intel (INTC) are also racing to expand their AI offerings. Meanwhile, Microsoft (MSFT), a key OpenAI partner, continues to integrate the startup’s models into its Azure cloud platform.
Deals like this one suggest that computing power is turning into a core asset, much like cloud capacity was a decade ago.
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