AI News Feed
Market watch
Mini PC and Docked Laptop Are Nearly Equivalent for Home Offices, Engadget SaysNetApp's Novus Targets Metadata Bottlenecks in AI Data InfrastructureTechRadar Publishes October 6 Answers for Quordle, NYT Strands and NYT ConnectionsGemini may soon call your mom for you, teardown suggestsFinland Drafts Grid Connection Overhaul, Pushing Large Data Centers Down Priority QueueCarPlay widgets put more iPhone apps on the dashboard, and drivers can add or remove them from Settings
Mini PC and Docked Laptop Are Nearly Equivalent for Home Offices, Engadget SaysNetApp's Novus Targets Metadata Bottlenecks in AI Data InfrastructureTechRadar Publishes October 6 Answers for Quordle, NYT Strands and NYT ConnectionsGemini may soon call your mom for you, teardown suggestsFinland Drafts Grid Connection Overhaul, Pushing Large Data Centers Down Priority QueueCarPlay widgets put more iPhone apps on the dashboard, and drivers can add or remove them from Settings
Markets

Cerebras Shares Climb 6% After Sam Altman Calls Chipmaker a Close Partner

Cerebras stock rose 6.3% in premarket trading Monday after OpenAI CEO Sam Altman called the AI chipmaker a close partner. The rebound followed a 20% drop last week when OpenAI said GPT-6.1 Sol's Ultrafast mode would run on Nvidia GPUs instead of Cerebras chips.

AI News Feed · 2026-10-05 20:17

The company, which made its Nasdaq debut in May in a large IPO, saw its stock plummet 20% to its lowest price last week. The drop came after it was revealed that OpenAI would power its "Ultrafast" mode for GPT-6.1 Sol with Nvidia graphics processing units instead of Cerebras chips.

In a post on X on Friday, Altman addressed investor speculation. "There is some speculation about our partnership with Cerebras," he said. "Cerebras is a close partner, and we have a deep engagement pushing on the frontiers of speed." The stock rose almost 3% in extended trading Friday after his comments.

At its last premarket price of $177 per share, Cerebras was down by nearly half from its post-IPO high. Its market capitalization stood at just over $39 billion, down from $95 billion during its May debut.

Cerebras competes with Nvidia by selling large computer chips and AI systems designed to run AI models faster than traditional GPUs. It has claimed that its flagship product, the Wafer Scale Engine 3, runs faster than Nvidia's GPU. In January, Cerebras signed a $10 billion deal with OpenAI to supply 750 megawatts of computing power through 2028.

Citi analysts said Friday that their view of Cerebras' revenue outlook between 2026 and 2028 remains "unchanged." "We believe frontier-AI labs' latest models would initially roll out on internal chips before running on third-party or Cerebras cloud, so it's too early to read much into it," they said in a note Friday morning.

The analysts added that the stock's ability to outperform is increasingly tied to evidence that gross margins are stabilizing. "Any further delay in the gross margin trough would likely weigh on sentiment, particularly given Cerebras' premium valuation," they said.