Cerebras · OpenAI · Nvidia · Sam Altman · Meta · Alibaba · CNBC Technology
Cerebras stock hits post-IPO low, tumbling 20% for the week on Nvidia pressure and lockup expiration
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Cerebras stock plummeted nearly 20% this week to its lowest price since the company's monster IPO in May, after a report that chip giant Nvidia will power a crucial piece of OpenAI's latest model.
Key facts
- CEO Andrew Feldman and CTO Sean Lie, both minted billionaires by the IPO process, sold over $240 million of Class A shares between Aug. 20 and Sept
- In January, Cerebras struck a deal worth over $10 billion with OpenAI to supply it with 750 megawatts of computing power through 2028
- Still, it's been a brutal stretch for Cerebras, which closed at a $95 billion market cap on the first day of trading, shy of joining the ranks of Meta, Alibaba and now SpaceX, which closed
- The stock, which closed on Friday at $166.43, was also under pressure this week due to the expiration of post-IPO restrictions on some insider shares
Summary
Research firm SemiAnalysis posted on X on Wednesday that OpenAI will power its "Ultrafast" mode for GPT-6.1 Sol with Nvidia graphics processing units instead of Cerebras hardware. The stock, which closed on Friday at $166.43, was also under pressure this week due to the expiration of post-IPO restrictions on some insider shares. However, it rose almost 3% in extended trading on Friday after OpenAI CEO Sam Altman responded to the "speculation about our partnership with Cerebras. "Cerebras is a close partner, and they have a deep engagement pushing on the frontiers of speed," Altman wrote in a post on X.