Cerebras to File IPO as OpenAI Deal Tops $20 Billion

Two people familiar with the matter confirmed Cerebras plans to file an initial public offering before markets close on Friday. The company has shifted from selling AI chips to third parties to operating its processors in company-controlled data centers and selling that capacity as a cloud service. Customers increasingly seek ready access to compute rather than standalone hardware.

In January, Cerebras disclosed a commitment to supply up to 750 megawatts of computing power to OpenAI through 2028 in a deal then valued at more than $10 billion. More recent reports indicate OpenAI expanded the arrangement to in excess of $20 billion and will receive warrants to buy Cerebras stock, linking future compute purchases to potential ownership.

OpenAI executive Sachin Katti described the partnership: “OpenAI’s compute strategy is to build a resilient portfolio that matches the right systems to the right workloads. Cerebras adds a dedicated low-latency inference solution to our platform. That means faster responses, more natural interactions, and a stronger foundation to scale real-time AI to many more people.”

One known use case runs a cloud-based coding tool on Cerebras systems, where low-latency inference is important.

Cerebras has emphasized the scale and speed of its wafer-scale processors to compete with dominant GPU suppliers such as Nvidia and AMD. The company focuses on inference workloads where users expect near-instant replies.

The company raised $1 billion in financing in February at a $23 billion valuation.

Oracle’s cloud unit has included Cerebras chips among its suppliers, though the vendor’s public price list did not list Cerebras at the time.

If the IPO filing proceeds this week, the company’s public documents will provide more detail on OpenAI commitments and the cloud-service business, including revenue, margins and capital needs.