OpenAI Partners with Cerebras Systems for Significant Computing Power Boost
OpenAI has entered into a major multi-billion dollar partnership with Cerebras Systems, a company reportedly backed by Sam Altman. This collaboration will involve OpenAI purchasing up to 750 megawatts of computing power over the next three years. Cerebras Systems specializes in building AI chip startups that create purpose-built AI systems designed to accelerate long outputs from AI models. Their products achieve increased speed by integrating massive compute, memory, and bandwidth onto a single, large chip, thereby eliminating the bottlenecks that lead to sluggish inference on conventional hardware.
OpenAI intends to leverage this capability to make its AI products respond more rapidly. This means that when users pose complex questions, generate code, create images, or run AI agents, the processing time will be reduced, enabling real-time responses. This enhanced speed will allow users to accomplish more, engage for longer periods, and execute higher-value workloads.
According to an official statement from OpenAI, the company plans to integrate this low-latency capacity into its inference stack in phases, progressively expanding its application across various workloads.
Sachin Katti of OpenAI commented on the development, stating, "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." She further explained that this aligns with OpenAI’s compute strategy, which focuses on building a resilient portfolio that matches the appropriate systems to specific workloads.
Andrew Feldman, co-founder and CEO of Cerebras, expressed his enthusiasm for the partnership, highlighting the opportunity to combine the world's leading AI models with the world's fastest AI processor. Feldman remarked, "Just as broadband transformed the internet, real-time inference will transform AI, enabling entirely new ways to build and interact with AI models."
The substantial computing capacity is scheduled to become available in multiple tranches through 2028. This development occurs as OpenAI continues to grapple with explosive demand and a significant shortage of compute resources. The company has been actively seeking to reduce its heavy reliance on Nvidia and major cloud providers such as Microsoft and Oracle. However, this move has also drawn scrutiny due to Sam Altman's reported investment in Cerebras Systems.
OpenAI Forms Strategic Alliance with SoftBank Group
In a separate but related development, OpenAI announced a strategic partnership with SB Energy, a SoftBank Group company, as part of its "Project Stargate." This collaboration is being hailed as a significant advancement in the development of next-generation artificial intelligence (AI) and energy infrastructure within the United States. To support this initiative amidst the escalating demand for AI compute, both OpenAI and SoftBank Group have committed $500 million each, which will be invested in SB Energy.
OpenAI has also selected SB Energy to construct and manage its previously announced 1.2 GW data center site located in Milam County. The equity funding will bolster SB Energy’s expansion efforts as it concentrates on developing several multi-gigawatt data center campuses slated to commence service this year.
Addressing Community Concerns Regarding Data Centers
According to the official statements, both SB Energy and OpenAI are committed to investing in the communities where these projects are located. This commitment includes providing well-paying jobs, supporting workforce development, and contributing to grid modernization, thereby fostering durable economic growth for partner communities.
The Milam County Data Center is projected to generate thousands of construction jobs and has been designed with a focus on minimizing water usage. Additionally, there are plans in place to support the energy requirements of the Milam County Data Center while safeguarding the interests of Texas ratepayers.
These initiatives demonstrate OpenAI's awareness of the growing apprehension among residents living near data center sites. The year 2025 witnessed an increase in the spread of the Not-in-my-backyard (NIMBY) movement, as more individuals, weary of noise pollution and the substantial water consumption of data centers in their vicinities, began advocating for their dismantling or prevention.
In response to these community grievances, companies have been actively pursuing improved solutions, such as implementing liquid cooling systems to replace noisy HVAC units and pledging durable economic growth for affected areas. Despite these efforts, public skepticism persists, and many have outright refused to cooperate, attempting to resist what they now refer to as a detrimental development.