Latest / THE DAILY BRIEF / AI Chip Maker Cerebras Systems Raises $1.1 Billion

Transcript

AI Chip Maker Cerebras Systems Raises $1.1 Billion · THE DAILY BRIEF

• 0:00
  Speaker 1: My assessment with Cerebra say, is is that you claim
• 0:03
  Speaker 1: that the technology is as competitive or better than what
• 0:07
  Speaker 1: in Video's systems offer, and you are aggressively building out
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  Speaker 1: that infrastructure and you are doing deals with end customers
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  Speaker 1: in the context of this funding round, what's your priority here?
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  Speaker 2: Sure, I think it's not just what we think. Every
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  Speaker 2: third party benchmark has shown that we are ordered twenty
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  Speaker 2: times faster than in Video GPUs AT for inference work.
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  Speaker 2: So that's for the using of AI. And so this
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  Speaker 2: is the largest and sort of fastest growing part of
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  Speaker 2: the market. So we wanted to fuel our continued extraordinary growth,
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  Speaker 2: and so we're going to use this money to double
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  Speaker 2: our manufacturing capacity. We manufacture in the US, and we're
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  Speaker 2: going to double in the US, to extend our foot
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  Speaker 2: more data centers so we can support more customers and
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  Speaker 2: those are in the US as well, okay, and to
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  Speaker 2: continue to invest behind our pioneering technology which has sort
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  Speaker 2: of solved problems that were open for seventy five years
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  Speaker 2: in the compute industry.
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  Speaker 1: Andrew to what extent you supply constrained? In other words,
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  Speaker 1: you have all of these customers, are you having to
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  Speaker 1: choose who gets first? DIBs when some capacity comes online.
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  Speaker 2: Right now, one of the most challenging components is to
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  Speaker 2: get access to data centers, and those are some of
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  Speaker 2: the massive contracts you discussed in your previous segment with
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  Speaker 2: Core that they're providing to the likes of Meta. Meta
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  Speaker 2: is also one of our customers. But the ability to
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  Speaker 2: stand up and deliver data centers filled with our gear
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  Speaker 2: so that our customers can joy the benefit of the
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  Speaker 2: fastest inference through the cloud is one of the limiting
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  Speaker 2: factors right now.
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  Speaker 3: You've got what five new data centers just in the
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  Speaker 3: course of twenty twenty five. Looking at Dallas, Oklahoma City,
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  Speaker 3: look at Santa Clara. What's really interesting, Andrew, is that
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  Speaker 3: where are you building? Are you literally going out there building?
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  Speaker 3: Are you just trying to win future relationships with a
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  Speaker 3: Core weave so that they take your compute rather than
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  Speaker 3: that of Nvidia.
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  Speaker 2: Well, I think we are renters of data centers. We
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  Speaker 2: are not builders of data centers, and so we partner
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  Speaker 2: with those who own the real estate and those who
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  Speaker 2: stand up the facility. We fill the facility, we were
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  Speaker 2: at the facility and then fill it with our infrastructure,
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  Speaker 2: and that infrastructure is then used by customers around the world,
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  Speaker 2: either by the day, by the month, by the token
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  Speaker 2: to get their fast AI and so I think that's
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  Speaker 2: the way we think about it.
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  Speaker 3: Carolyn Andrew. We think about your customers, and you're mentioning
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  Speaker 3: the likes of Meta. I'm interested in also where the
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  Speaker 3: money has been coming from for this round, because I
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  Speaker 3: noticed that one of your key backers of the past
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  Speaker 3: isn't on the list, seams G forty two, key investor
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  Speaker 3: in previous and of course Middle East and based relationships
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  Speaker 3: potentially CEO with China, and that's been an issue for
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  Speaker 3: Syphius in particular, if you wanted to IPO, have you
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  Speaker 3: decided not to take money from them this time?
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  Speaker 2: No, that wasn't That wasn't the situation at all. I
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  Speaker 2: think it is very common in your dash to get
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  Speaker 2: to being public to raise raise. A late stage round
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  Speaker 2: from public market investors around was led by Fidelity in
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  Speaker 2: a treatise. It included Tiger Global Valor seventeen eighty nine,
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  Speaker 2: It included Alpha Wave, all of whom have large and
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  Speaker 2: predominant public market practices, and so I think this was
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  Speaker 2: a round that was aimed at a different class of investor.
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  Speaker 2: We are continuing to collaborate with G forty two. They
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  Speaker 2: are our strategic partner. We are building enormous clusters in
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  Speaker 2: the US for them. We are training models, we are
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  Speaker 2: serving models, including one that they built in partnership with
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  Speaker 2: their leading university in the UA, NBC UAI, so that
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  Speaker 2: partnership remains rock solid.
• 4:37
  Speaker 1: Andrew quickly. Then the obvious question is does your ongoing
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  Speaker 1: association with G forty two preclude you from pushing forward
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  Speaker 1: with an investment based on the history of the Scifius review.
• 4:48
  Speaker 2: Well, not at all, not at all. I think each
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  Speaker 2: investor has their own appetite by stage, and what we
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  Speaker 2: found in this round was that the lead investors had
• 5:01
  Speaker 2: a very large appetite and so we were able to
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  Speaker 2: meet that appetite. We cleared Cyphius in March, and so
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  Speaker 2: there is nothing blocking the I P O.
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  Speaker 3: So when Andrew, when in mid March we cleared when
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  Speaker 3: will you I P there?
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  Speaker 2: We ask, Yeah, that's the big question. I appreciate you asking,
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  Speaker 2: and as you also know, I'm unable to tell you
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  Speaker 2: with one on file, but I appreciate it.