Cerebras Shares Fall 20% as OpenAI Shifts to Nvidia
AI chip company Cerebras saw its stock drop nearly 20% amid reports that OpenAI will prioritize Nvidia's technology.
Shares of US-based AI chip company Cerebras fell nearly 20% this week following a report from research firm SemiAnalysis. The report stated that OpenAI will utilize Nvidia GPUs for the "Ultrafast" mode of GPT-6.1 Sol, rather than Cerebras hardware.
This decline further exacerbates Cerebras' losses since its initial public offering in May. The stock is now down more than half from its post-debut peak. Trading activity has also been influenced by insider share sales.
The stock faced additional pressure after post-IPO restrictions expired on 19.4 million insider-held shares. CEO Andrew Feldman and CTO Sean Lie sold over $240 million worth of Class A stock between August and September under trading plans established shortly after the IPO.
Cerebras had previously announced a significant deal with OpenAI, valued at over $10 billion, to supply 750 megawatts of compute power through 2028. However, recent developments suggest a shift in OpenAI's strategy, raising investor concerns about Cerebras' role in AI inference services.