Cerebras stock hits post-IPO low, tumbling 20% for the week on Nvidia pressure and lockup expiration
Cerebras shares hit an all-time low due to pressure from chip giant Nvidia, plus a post-lockup selloff.
TL;DR
- Cerebras stock plummeted nearly 20% to its lowest price since its IPO.
- A report indicated Nvidia will power OpenAI's 'Ultrafast' mode for GPT-6.1 Sol, instead of Cerebras hardware.
- The stock decline was also influenced by the expiration of post-IPO restrictions on insider shares.
- OpenAI CEO Sam Altman responded to speculation, stating Cerebras is a 'close partner' and they have 'deep engagement pushing on the frontiers of speed'.
- Cerebras' market cap has fallen from $95 billion on its IPO day to just over $39 billion.
- Investors were initially excited about Cerebras as an alternative to Nvidia for AI, with a previous $10 billion deal with OpenAI for computing power.
- The potential loss of OpenAI's inference business to Nvidia is a significant concern, as inference is projected to surpass training as the dominant AI workload.
- Additional shares unlocked due to lockup expirations, with executives including the CEO and CTO selling millions of dollars worth of stock.