Cerebras stock hits post-IPO low on Nvidia pressure, lockup expiration
Cerebras Systems stock dropped significantly following reports that OpenAI may prioritize Nvidia hardware for its upcoming GPT-6.1 model. Despite a public statement from Sam Altman reaffirming the partnership, investor confidence remains shaken as the company faces post-IPO share lockup expirations.
Why it matters
The shift highlights the intense competition in the AI infrastructure market and the volatility of high-growth AI stocks dependent on major partnerships.
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.
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. Cerebras shares are now down by more than half since their initial pop that followed the company's debut on the Nasdaq.
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."
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