Cerebras, which builds custom hardware for AI models, is currently seeking to double its $4 billion valuation through an IPO. OpenAI, on the other hand, has reportedly abandoned its plans for chip manufacturing and is instead focusing on building a team of chip designers and engineers. It is also working with semiconductor firms Broadcom and TSMC to create an AI chip for running models, which could arrive as soon as 2026.
Key takeaways:
- OpenAI, co-founded by Elon Musk, was considering acquiring AI chipmaking company Cerebras in 2017, according to new legal filings.
- The acquisition would have been done through Tesla, Musk's EV company, as suggested by Ilya Sutskever, one of OpenAI’s co-founders and ex-chief scientist.
- The deal ultimately fell through and OpenAI shelved its chip ambitions for years, instead focusing on building a team of chip designers and engineers and working with semiconductor firms Broadcom and TSMC to create an AI chip for running models.
- Cerebras, which builds custom hardware to run and train AI models, is seeking to double its $4 billion valuation through an IPO, despite facing challenges such as reliance on a single firm for a significant portion of its revenue and concerns over its CEO's past legal issues.