Story
Cerebras Stock Tumbles on Report of Losing Key OpenAI Model to Nvidia
Summary
Shares of AI chipmaker Cerebras Systems fell sharply after a research firm reported that OpenAI's latest high-speed model is running on Nvidia hardware, raising concerns about the company's key commercial relationship.
Shares of AI hardware firm Cerebras Systems (CBRS) fell more than 6% on Tuesday after a research report suggested its technology is not being used to power OpenAI's latest high-speed artificial intelligence model, raising concerns about its crucial partnership with the AI leader.
Report Sparks Investor Concern
Cerebras stock dropped by 6.3% in morning trading following a post on the social media platform X from semiconductor research firm SemiAnalysis. The post claimed that OpenAI’s newly unveiled GPT-6.1 Sol Ultrafast model is running on Nvidia (NVDA) GPUs—potentially from the Blackwell-class family—instead of Cerebras hardware.
The claim sparked immediate fears that Cerebras could be losing its most significant commercial partner to its primary competitor. Until Cerebras or OpenAI clarifies the hardware arrangement for the new model, the uncertainty is likely to remain an overhang on the stock.
A High-Stakes Partnership
The development represents a potential setback for Cerebras, which had previously highlighted its role in powering the Ultrafast tier for OpenAI’s GPT-5.6 Sol model. That partnership served as a key proof point for Cerebras's unique Wafer-Scale Engine architecture, delivering speeds of up to 750 tokens per second.
AdIn contrast, the new GPT-6.1 Sol Ultrafast, announced at OpenAI's DevDay on September 29, reportedly achieves around 300 tokens per second. This performance difference has led to questions about whether the larger model's requirements exceeded the capabilities of Cerebras's architecture.
Broader Market Context
The negative news hit a stock already facing investor skepticism. The company reported a GAAP net loss of $450.5 million in its most recent quarter and has seen approximately $266 million in insider share sales over the past three months, according to the source.
Cerebras's decline was particularly notable as it occurred while the broader market was gaining, with the tech-focused Nasdaq Composite up 0.9%. The stock is now trading closer to its 52-week low of $160.81 than its 52-week high of $386.34.
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