February 21, 2024

Cerebras Systems signs $100 mln AI supercomputer deal with G42 UAE

July 20 (Reuters) – Cerebras Systems said on Thursday it has signed a roughly $100 million deal to supply the first of three artificial intelligence (AI) supercomputers to the United Arab Emirates-based G42 technology group.

The market comes as cloud computing providers around the world look for alternatives to chips from Nvidia Corp ( NVDA.O ), the market leader in AI computing whose products are in short supply, thanks to growing demand for ChatGPT and other services. Cerebras is one of many startups looking to challenge Nvidia.

Silicon Valley-based Cerebras said G42 has agreed to buy three of the Condor Galaxy systems, all of which will be built in the United States to speed up the rollout. The first will come online this year, with two more coming in early 2024.

Abu Dhabi-based G42, a technology conglomerate with nine operating companies that includes datacenter businesses and cloud services, says it plans to use Cerebras systems to sell AI computing services to healthcare and energy companies. G42 has raised $800 million from US technology investment firm Silver Lake, which is backed by Mudabala, the UAE’s sovereign wealth fund.

“We have what Cerebras calls a ‘white glove’ service that made it easy” to build AI systems on its machines, G42 Cloud CEO Talal AlKaissi told Reuters.

“There will be some additional capacity that we hope to wholesale with Cerebras to customers in the open source AI community from many parts of the world, particularly in the US ecosystem.”

The contract for the first of the three systems announced Thursday is worth about $100 million, said Andrew Feldman, CEO of Cerebras.

“What we’re saying is that the $100 million contract takes us through Condor Galaxy 1… That’s the unit, the building block.”

AlKaissi Cloud G42 declined to comment on the terms of the agreement.

Reporting by Stephen Nellis in San Francisco and Krystal Hu in New York; Editing by Rashmi Aich

Our Standards: Thomson Reuters Trust Principles.

Krystal reports on venture capital and startups for Reuters. She covers Silicon Valley and beyond through the lens of money and characters, with a focus on growth-stage startups, technology investments and AI. She previously covered M&A for Reuters, breaking stories about Trump’s SPAC and Elon Musk’s Twitter funding. Before that, she reported on Amazon for Yahoo Finance, and congressional lawmakers cited her investigation into the company’s retail practices. Krystal began a career in journalism by writing about technology and politics in China. She has a master’s degree from New York University, and enjoys scooping Matcha ice cream as well as scooping at work.

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