OpenAI Partners with Cerebras to Add 750MW AI Compute Capacity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Should l Buy MSFT?
OpenAI announced it is partnering with Cerebras to add 750MW of ultra low-latency AI compute to its platform. Terms were not disclosed. The company stated: "Integrating Cerebras into our mix of compute solutions is all about making our AI respond much faster. When you ask a hard question, generate code, create an image, or run an AI agent, there is a loop happening behind the scenes: you send a request, the model thinks, and it sends something back. When AI responds in real time, users do more with it, stay longer, and run higher-value workloads. We will integrate this low-latency capacity into our inference stack in phases, expanding across workloads." Sachin Katti of OpenAI added: "OpenAI's compute strategy is to build a resilient portfolio that matches the right systems to the right workloads. Cerebras adds a dedicated low-latency inference solution to our platform. That means faster responses, more natural interactions, and a stronger foundation to scale real-time AI to many more people."
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 414.190
Low
500.00
Averages
631.36
High
678.00
Current: 414.190
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI Challenges: Ives emphasized that while AI is disrupting the software industry, the notion that software companies have become irrelevant is overly extreme, suggesting that there is still room for survival, particularly citing Palantir as an example of software's adaptability in the new landscape.
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- Industry-Wide Spending: The five largest U.S. tech companies are projected to spend over $630 billion on data centers, AI development, and other capacity-enhancing expenditures, a figure that surpasses the GDP of countries like Singapore or Israel, reflecting strong confidence in future growth but also raising market concerns.
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