Cerebras Systems experienced a significant decline in its stock price, closing at $166.43, down from a market cap of $95 billion at its IPO to just over $39 billion. The drop follows a report from SemiAnalysis indicating that OpenAI will utilize Nvidia's graphics processing units for its 'Ultrafast' mode in GPT-6.1 Sol, rather than Cerebras' hardware.
This shift is particularly concerning for Cerebras, which had previously secured a $10 billion deal with OpenAI to provide substantial computing power through 2028. The expiration of lockup restrictions on insider shares, allowing the sale of 19.4 million shares, has further pressured the stock.
Executives, including CEO Andrew Feldman and CTO Sean Lie, have already sold over $240 million in shares since the IPO, contributing to investor concerns about the company's future prospects in the competitive AI hardware market