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Cerebras Stock Hits Post-IPO Low as Nvidia Report and Lockup Expiration Pressure Shares

Cerebras shares fell nearly 20% for the week to $166.43, their lowest since the May IPO, after SemiAnalysis said OpenAI will use Nvidia GPUs for GPT-6.1 Sol's Ultrafast mode and insider lockup restrictions expired. CEO Sam Altman later called Cerebras a close partner, and the stock rose about 3% after hours Friday.

AI News Feed · 2026-10-03 08:39

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. The report undercut a central part of the investor case for Cerebras, which had been seen as an alternative to Nvidia for AI computing. Cerebras shares are now down more than half since the initial pop that followed its Nasdaq debut.

Cerebras makes dinner plate-sized ASICs, custom microchips built for inference workloads, and leases them from inside its own data centers as a cloud service. In January, the company struck a deal worth more than $10 billion with OpenAI to supply 750 megawatts of computing power through 2028. According to McKinsey, inference is set to surpass training as the most dominant workload in AI data centers by the end of the decade.

The stock also faced pressure from the expiration of post-IPO restrictions on insider shares. According to the company's prospectus, up to 19.4 million shares held by directors, officers, non-executive employees and non-employee holders unlocked on Wednesday. That equals 8% of total shares outstanding. Before that, up to 14.6 million shares have been unlocked for sale every two weeks since Aug. 19.

CEO Andrew Feldman and CTO Sean Lie, both made billionaires by the IPO process, sold more than $240 million of Class A shares between Aug. 20 and Sept. 25 under trading plans adopted shortly after the IPO. Other executives have also sold shares valued in the millions.

Cerebras closed at a $95 billion market cap on its first day of trading, just shy of joining Meta, Alibaba and now SpaceX, which closed their initial day with valuations over $100 billion. Cerebras' market cap now sits at just over $39 billion.

Altman's post on X on Friday offered some support. “Cerebras is a close partner, and we have a deep engagement pushing on the frontiers of speed,” he wrote. The stock rose almost 3% in extended trading after his comments. Still, the week's decline left Cerebras far below its post-IPO peak and highlighted the pressure the company faces as Nvidia remains dominant in AI chips and more shares become eligible for sale.