OpenAI at one point considered acquiring AI chip startup Cerebras

OpenAI once considered acquiring AI chipmaker Cerebras through Tesla in 2017 to enhance their in-house chip capabilities.

: In 2017, OpenAI considered acquiring chipmaker Cerebras via Tesla. Emails from Ilya Sutskever to Elon Musk and Greg Brockman reveal negotiations. The acquisition plan fell through, but emphasized OpenAI's aim for in-house chip capabilities. To cut costs, OpenAI is now working with Broadcom and TSMC, aiming for a 2026 AI chip release.

In 2017, OpenAI contemplated acquiring AI chipmaking company Cerebras. Ilya Sutskever, co-founder of OpenAI, proposed the idea to Sam Altman and Elon Musk, suggesting the acquisition through Tesla due to Musk's influence, although concerns were raised over Tesla's shareholder obligations.

Despite negotiations and due diligence with Cerebras, the merger was not finalized. Cerebras eventually sought an IPO and is aimed to increase its $4 billion valuation but faces challenges due to its financial ties with G42 and CEO Andrew Feldman's past legal issues.

If acquired, Cerebras might have supported OpenAI’s ambition to develop in-house chips, aligning with its strategy of reducing dependency on Nvidia. OpenAI plans to produce its chips with Broadcom and TSMC, expecting output by 2026, reflecting a shift from building factories to enhancing design capabilities.

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