Cerebras Sinks 20% as Nvidia Wins OpenAI GPT-6.1 Work and 19.4 Million Shares Unlock
Updated
Updated · CNBC · Oct 2
Cerebras Sinks 20% as Nvidia Wins OpenAI GPT-6.1 Work and 19.4 Million Shares Unlock
3 articles · Updated · CNBC · Oct 2
Summary
$166.43 was Cerebras' Friday close after the stock fell nearly 20% this week to its lowest level since the May IPO.
SemiAnalysis reported OpenAI will use Nvidia GPUs for the "Ultrafast" mode of GPT-6.1 Sol instead of Cerebras hardware, undercutting hopes that Cerebras would be a major Nvidia alternative in AI inference.
19.4 million insider-held shares — about 8% of shares outstanding — unlocked on Wednesday, adding to selling pressure already fed by 14.6 million shares becoming eligible for sale every two weeks since Aug. 19.
CEO Andrew Feldman and CTO Sean Lie sold more than $240 million of Class A stock between Aug. 20 and Sept. 25, while Cerebras' market value has slid to just over $39 billion from a $95 billion first-day close.
The setback clouds a January deal worth more than $10 billion to supply OpenAI with 750 megawatts of computing power through 2028, even as inference is expected to overtake training in AI data centers by decade-end.