Cerebras plans to build AI systems for giant Stargate UAE data center project

Overview

Cerebras Systems, the California-based AI chip startup, has announced ambitious plans to deploy its advanced infrastructure across the United Arab Emirates (UAE), bolstering the Gulf state's rapidly expanding artificial intelligence sector and reaching neighboring markets in India and Pakistan[1]. The initiative centers on the Stargate project, a bilateral U.S.-UAE agreement set to develop the largest AI data center cluster outside the United States.

Key Developments

  • Cerebras Systems manufactures high-performance AI chips and systems designed to accelerate the training and deployment of large AI models, competing directly with Nvidia.
  • CEO Andrew Feldman confirmed substantial deployment plans, including "megawatts worth of equipment" for the Stargate project, with expectations for significant clusters of Cerebras gear in the region[1].
  • G42, an Abu Dhabi-backed cloud and AI firm, is among Cerebras' largest clients. G42 signed a deal in 2023 to acquire supercomputers, intensifying the UAE’s AI infrastructure investments[1].
  • The first phase of Stargate UAE involves collaborations between major tech players including Nvidia and OpenAI, partnering with G42. However, the finalization of the deal is subject to ongoing U.S. security reviews given Washington’s concerns over potential Chinese access to advanced semiconductors via the UAE[1].
  • Cerebras-built computers designated for G42 are currently stationed in the U.S., as Middle Eastern customer deliveries require export licenses from the Trump administration[1].

Funding and Expansion Plans

  • This October, Cerebras withdrew its planned U.S. public listing after securing $1.1 billion in funding, giving the company a valuation of $8.1 billion[1].
  • New investors include 1789 Capital, co-managed by Donald Trump Jr[1].
  • The startup aims to use this capital to ramp up manufacturing and finance additional data centers, expanding its sites from six to as many as 12 or 15 in the upcoming months[1].
  • Feldman emphasized intent to go public in the future, with plans to refile for a U.S. listing as soon as feasible[1].

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