Cerebras Stock Falls to Post-IPO Low Amid OpenAI Deal Loss and Share Sell-Off
Cerebras Systems Inc.'s stock has dropped nearly 20% this week, reaching its lowest level since the company's IPO in May. The decline follows news that chipmaker Nvidia will power a key inference workload for OpenAI’s GPT-6.1 Sol model instead of Cerebras' hardware. This loss is significant as it undermines investor enthusiasm around Cerebras’ role in AI infrastructure. The stock has fallen over 50% from its IPO price, with the company's market cap now at just $39 billion compared to a peak valuation near $100 billion on its first trading day. The sell-off is also being fueled by the expiration of lockup restrictions allowing insiders and early investors to offload shares. Cerebras had previously secured a major deal with OpenAI in January, valued at over $10 billion through 2028. However, losing this inference workload to Nvidia has raised concerns about Cerebras' competitive position as the AI market shifts toward inference workloads.
Topics: Cerebras inference workloads IPO performance Nvidia OpenAI