Cerebras lands AWS deal; Nvidia's Jensen Huang sees $1T in revenue through 2020s at GTC
Mar 16, 2026
Key Points
- Cerebras secures a chips deal with Amazon Web Services, validating the AI chip company after years of investor skepticism.
- Data center capacity additions plummeted 50% from Q3 to Q4 2025, signaling infrastructure strain despite explosive AI demand.
- Elon Musk's TeraFab project launches in seven days as the industry races to close a widening compute capacity gap.
Summary
Cerebras secures AWS partnership
Amazon announced a chips deal with Cerebras, the AI chip company building wafer-scale processors. The agreement validates Cerebras after years of skepticism from investors and competitors. No financial terms were disclosed.
Infrastructure capacity tightening
Data center capacity additions in Q4 2025 dropped to 25 gigawatts, a 50% decline from Q3, as the market struggles to keep pace with explosive AI demand. Anthropic alone is targeting 5 gigawatts of compute for 2026, suggesting the slowdown is real despite continued growth.
Other developments
Elon Musk announced that his TeraFab project launches in seven days. Separately, economist Tyler Cowen argued that workers facing AI-driven wage erosion should work harder now to either lock in current earnings or acquire AI skills before their human capital depreciates. Both the carriage-maker strategy of extracting value from existing skills and the automobile-repair strategy of learning new ones require effort.