OpenAI Signs $10 Billion Deal with Cerebras, Challenging Nvidia

Securing Computing Power to Enhance ChatGPT Performance

OpenAI, the developer behind ChatGPT, has signed a computing power purchase agreement with semiconductor chip development startup Cerebras.

According to the Wall Street Journal (WSJ) on January 14 (local time), OpenAI has agreed to purchase up to 750 megawatts (MW) of computing power from Cerebras over the next three years. The contract is reportedly worth as much as 10 billion dollars (approximately 12 trillion won).

Cerebras is a startup that possesses 'Wafer Scale Engine' (WSE) technology, which enables the production of an entire wafer as a single, massive chip. Typically, chip manufacturers cut wafers into smaller pieces to create chips, which requires connecting processing chips and memory chips to handle computations.

By fabricating an ultra-large single chip like Cerebras, it is possible to save power otherwise consumed by data transfers between chips and eliminate bottlenecks, thereby increasing data processing speeds. Cerebras claims that the response speed of its chips is up to 15 times faster than conventional graphics processing units (GPUs) such as those from Nvidia.

Cerebras explained that the partnership between the two companies has been in preparation for about 10 years. The two firms have been exchanging ideas and sharing research outcomes and early projects since 2017. In particular, OpenAI CEO Sam Altman has also made direct investments in Cerebras.

Currently, OpenAI is making every effort to secure data center capacity to support its growth. For example, ChatGPT now has more than 900 million weekly users. As the user base grows rapidly, concerns have arisen over potential shortages of computing power. In response, OpenAI has collaborated with Cerebras as part of its search for more affordable and efficient alternatives to chips designed by Nvidia.

Meanwhile, there is speculation that OpenAI will pursue an initial public offering (IPO) this year. Last year, it secured an investment agreement worth 40 billion dollars (about 57 trillion won) from SoftBank. If OpenAI goes public, it is expected that the company’s valuation could reach as high as 1 trillion dollars (about 1,400 trillion won).

This content was produced with the assistance of AI translation services.