OpenAI and Cerebras Team Up for AI Power Boost

OpenAI, the company behind ChatGPT, has just made a huge deal with Cerebras Systems. They will use Cerebras' special chips to get more computing power. This deal is worth over $10 billion and will last for three years.

Why the Deal?

OpenAI needs this power because they have over 900 million users every week. They are running out of computing power.

The Players

• Sam Altman, OpenAI's boss, has been friends with Cerebras for a long time. They first talked about working together in 2017.
• This deal shows that OpenAI is looking for faster and cheaper ways to run their AI systems.
• They are not just relying on Nvidia, the big name in chips. OpenAI is also working with Broadcom and AMD for custom chips.

The Benefits

• Cerebras' chips are great for AI tasks, like coding. This deal is a big win for Cerebras. They have been struggling to make a name for themselves in the chip market.
• OpenAI is also under a lot of financial pressure. They made $13 billion last year but have signed $600 billion in long-term contracts. Altman says they will cover these costs with future growth.

The Big Picture

This deal is a big step for both companies. It shows how important AI is becoming. And how companies are willing to spend big money to stay ahead.