Cerebras Stock Plummets on Report of OpenAI Shift to Nvidia GPUs

Shares of AI chipmaker Cerebras Systems (CBRS) plunged more than 8% on Monday after a report from a semiconductor research firm alleged that key customer OpenAI has opted to use rival Nvidia (NVDA) GPUs for its newest flagship model, casting doubt on the company's core partnership.

Key Partnership Questioned

The sell-off was triggered by a post on the social media platform X from semiconductor research firm SemiAnalysis. The firm stated that OpenAI's newly unveiled GPT-6.1 Sol Ultrafast model is running on Nvidia GPUs, specifically at low batch sizes. This marks a potential departure from the prior-generation model, GPT-5.6 Sol Ultrafast, which was powered by Cerebras hardware.

The report raises critical questions for investors about the status of the $20 billion multi-year deal between Cerebras and OpenAI, which has been a cornerstone of the chipmaker's valuation. Neither Cerebras nor OpenAI has issued an official statement confirming or denying the report.

Market Impact and Competitive Threat

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The market reacted swiftly to the news, with Cerebras stock falling to $178.71, approaching its 52-week low of $160.81. The drop was a notable underperformance against the broader market, as the Nasdaq was trading higher on the day.

The core of the concern lies in the potential erosion of Cerebras's competitive moat. The company's investment thesis is built on its Wafer-Scale Engine (WSE), a single, massive chip designed to eliminate the latency of communication between multiple GPUs. If Nvidia's latest platforms, such as its Blackwell architecture, can now match Cerebras's performance on low-latency tasks, the specialized premium Cerebras commands could be at risk.

Context for Investors

The uncertainty adds to existing investor concerns, which include approximately $266 million in insider share sales over the past three months and the company's lack of profitability. Cerebras posted a GAAP net loss of $450.5 million in its most recent quarter. Until the companies provide clarity on the hardware stack for GPT-6.1, the ambiguity surrounding its most important customer relationship will likely continue to weigh on Cerebras's stock.