OpenAI will purchase 750 megawatts of computing power from Cerebras for over $10 billion. Cerebras demonstrated more efficiency in running OpenAI’s models on its chips, leading to a deal focusing on inference and reasoning models. Cerebras will build data centers with its chips, with capacity coming online through 2028.

The tie-up with Cerebras will help OpenAI respond faster with AI products. The industry’s demand for computing power for inference is driving companies to build reasoning models. This deal will also help Cerebras diversify its revenue away from G42, one of its largest customers.

Cerebras, known for its wafer-scale engines, competes with Nvidia in accelerating AI models. OpenAI CEO Sam Altman is an early investor in Cerebras. Cerebras is preparing for an IPO in the second quarter of this year after withdrawing its previous attempt. OpenAI is also laying the groundwork for its own IPO, potentially valuing it at $1 trillion.

Read more at Yahoo Finance: OpenAI signs $10 billion computing deal with Nvidia challenger Cerebras