- Challenge to Nvidia dominance
- Aramco to use rival’s CS-3 chips
- Cerebras planning IPO
Saudi Aramco is to buy advanced semiconductor chips from Cerebras Systems, the Abu Dhabi-backed chipmaker aiming to challenge Nvidia’s dominance in the AI arena, as it seeks to boost artificial intelligence in the kingdom.
The state-owned energy giant will use Cerebras’ CS-3 chips to build and deploy large language models (LLMs) – computer models essential for building artificial intelligence programs – and speed up AI development.
Andrew Feldman, co-founder and CEO of Cerebras, said the company was working with Aramco to deliver high-performance, low-latency computing (a network or system that can respond with minimal delay). This is essential for AI infrastructure, which will support applications for businesses and universities in Saudi Arabia.
Cerebras, which is based in California, raised $250 million in 2021 in a Series F funding round led by Alpha Wave Ventures, the Abu Dhabi Growth Fund and G42, the AI tech holding company backed by sovereign wealth fund Mubadala.
The funding round valued Cerebras at $4 billion. In June this year the company filed for an initial public offering. It plans to offer preferred shares at a discount to attract private investors before its listing.
Nvidia, also based in California and currently valued at more than $3 trillion, dominates the AI chip market with a 95 percent share, despite advances by rivals. It remains the preferred choice for many developers and organisations worldwide, including those in the UAE and Saudi Arabia.
However, Andrew Jackson, CEO of Inception, a subsidiary of G42 that has developed an Arabic and English LLM, told AGBI last year that the company was “doubling down on Cerebras” after using its supercomputer, Condor Galaxy 1 (CG1).
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“We are massive fans of Nvidia and have been their largest customer in the region,” Jackson said. “But we’re also open to trying new things. When we got access to CG1, we saw a dramatic speed-up in training time.”
Last month the company introduced Cerebras Inference, which it claims is the world’s fastest tool for AI inference (when an AI model draws a conclusion from brand-new data). The company says it is up to 20 times quicker than Nvidia’s equivalent product, but costs far less.
Tensions between the US and China have led to restrictions on Beijing’s access to Nvidia chips.
Nvidia’s sales are already limited in China and Russia. The Biden administration has also placed restrictions on the sale of some of its most valuable products to the Middle East, to prevent onward sale to China and to limit Gulf links to Chinese companies.
Semafor reported on Wednesday that the US government is considering allowing Nvidia to export advanced chips to Saudi Arabia.