Place the sugar, corn syrup and peanut butter in a large saucepan over medium low heat. Stirring constantly, cook the mixture until blended and the mixture begins to bubble. Remove from heat and set aside.
Combine the cereal with the chocolate chips in a large bowl. Stir in the hot peanut butter mixture until combined. Spread the mixture into a 13x9" lightly greased baking pan. Let cool to room temperature. Transfer to the refrigerator and let chill for 15-20 minutes or until set. Cut into squares or fun shapes with cookie cutters. Serve.
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