The Dinner Plate Sized Chip Challenging Nvidia

Key Takeaways

Finally, in Nvidia has a real challenger that's about to go public and and their secret is a microchip that's the size of a dinner plate. So, Cerebras Systems has just filed for an IPO at an expected $23 billion valuation. They reported over 500 million in revenue last year and they've built something completely different from the rest of the industry. When companies like Nvidia make chips, they take a massive silicon wafer, they chop it into hundreds of tiny squares, and wire them together. But, connecting all of these separate pieces creates eventually a bottleneck cuz data has to travel physical distances between these chips. That slows things down and burns a lot of power. Now, Cerebras looked at that and said, "Well, just don't cut the Just don't cut the chips." They leave the entire silicon wafer intact. It's one massive continuous circuit called a wafer-scale engine. And because the processors are literally sharing the same unbroken piece of silicon, data moves exponentially faster with a fraction of the energy. This hardware difference just landed them a massive contract including $20 from Open AI in this new agreement. Now, Nvidia still owns the market, but Cerebras proves that there is more than one way to build an AI brain, and their way about it is about to go public. If you want to stay on top of this, make sure you subscribe.