Cerebras Tumbles 7% as OpenAI Reportedly Uses Nvidia for GPT6.1 Ultrafast Mode
CBRS is trading near its 52-week low of $160.81 (15% above the low).
Summary
Cerebras shares fell 7% to $181.40 after SemiAnalysis reported that OpenAI is using Nvidia chips, not Cerebras hardware, to power the Ultrafast mode of its new GPT6.1 Sol model. This directly contradicts the August announcement that Cerebras would power Ultrafast mode, and OpenAI is Cerebras's largest customer by revenue backlog. The stock has already struggled since its May IPO at $350, and this adds another headwind to a company with high valuation and heavy dependence on a single customer. Watch for any official response from Cerebras or OpenAI, which could confirm or refute the report.
At the time of this announcement, CBRS was trading at $184.80 on NASDAQ in the Technology sector, with a market capitalization of approximately $41.4B. The 52-week trading range was $160.81 to $386.34. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.