OpenAI is planning to spend more than $20 billion on artificial intelligence chips from Cerebras Systems and will receive an equity stake in the chip company as part of the arrangement, according to a report from The Information.

The deal represents one of the largest chip procurement agreements in the AI industry and highlights the massive infrastructure investments required to support advanced AI model development. Cerebras Systems specializes in wafer-scale processors designed specifically for AI workloads.

The agreement would provide OpenAI with significant computing power to support its ongoing development of large language models and other AI systems. For Cerebras, the deal would represent a major validation of its chip technology and provide substantial revenue visibility.

The equity component of the arrangement suggests a deeper strategic partnership between the companies beyond a traditional supplier-customer relationship. This structure has become increasingly common in the AI industry as companies seek to secure critical chip supply while chip manufacturers look for long-term revenue commitments.

Neither OpenAI nor Cerebras immediately responded to requests for comment on the reported deal. The arrangement comes as demand for AI-specific chips continues to surge across the technology industry.