TMTB: Cerebras (CRBS) IPO Roadshow Notes

1) OpenAI Deal / Production Validation / Revenue Visibility

“OpenAI has announced hardware deals with many companies, but today there are only two companies who actually run their models and run them in production: Nvidia and Cerebras. Our deal with OpenAI is a committed, take-or-pay 750MW contract. It is well north of $20B and began with a $1B prepay. The structure is three tranches: in 2026 there will be 250MW, in 2027 there will be 250MW, and in 2028 there will be 250MW. In 2026, the 250MW will be delivered through the Cerebras cloud and leased for three years, with OpenAI having options on years four and five. In 2027 and 2028, OpenAI has the option of purchasing the equipment outright or continuing to receive deliveries through our cloud. In addition, OpenAI has an option for yet more capacity — 1.25GW. This is truly an enormous deal, one of the largest deals in Silicon Valley history. In our accounting, and in the models your brokers have, we assumed the most conservative approach: that all three tranches are taken through our cloud, which spreads revenue over the longest period of time and carries the highest amount of capex.”

2) Why OpenAI Needed Cerebras / Latency as a Product Problem