Cerebras stock drops 20% to post-IPO low on Nvidia report — SkimNews
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- Cerebras stock fell nearly 20% this week to a post-IPO low, closing Friday at $166.43, with market cap shrinking from $95 billion on its debut day to roughly $39 billion.
- SemiAnalysis posted on X Wednesday that OpenAI will power its 'Ultrafast' mode for GPT-6.1 Sol with Nvidia GPUs instead of Cerebras hardware.
- OpenAI CEO Sam Altman publicly backed the partnership on X Friday, writing 'Cerebras is a close partner, and we have a deep engagement pushing on the frontiers of speed'; the stock rose almost 3% in extended trading.
- Post-IPO lockup expiration released up to 19.4 million shares (8% of total outstanding) on Wednesday, with up to 14.6 million shares unlocking every two weeks since Aug. 19.
- Cerebras CEO Andrew Feldman and CTO Sean Lie sold over $240 million of Class A shares between Aug. 20 and Sept. 25 under trading plans adopted shortly after the IPO.
- In January, Cerebras struck a deal worth over $10 billion with OpenAI to supply 750 megawatts of computing power through 2028.
- Per McKinsey, inference is projected to surpass training as the most dominant workload in AI data centers by the end of the decade.
Why it matters: Cerebras' $95 billion debut valuation assumed it would be a serious Nvidia alternative, but losing the inference workload—the segment McKinsey projects will dominate AI data centers by decade's end—to Nvidia undercuts that thesis. With insiders cashing out over $240 million and lockup waves continuing biweekly, supply-side and demand-side pressure are hitting the stock simultaneously.
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