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Cerebras shares jump after optimism around OpenAI capacity deal
The stock rose as much as 19.2% to $261.08 on Monday, with investors focusing on Wedbush notes that OpenAI could extend Cerebras capacity arrangements through 2030.
Cerebras Systems Inc. shares snapped a two-day losing streak on Monday, rallying as much as 19.2% in intraday trading to $261.08, as optimism around its ongoing deal with OpenAI drew investor interest, according to Yahoo Finance.
Wedbush said in a market note that it sees progress in the two firms' existing agreement after a recent disclosure that Cerebras will power OpenAI's Ultrafast model of GPT-5.6 Sol. The firm also said OpenAI is committed to taking 750MW of Cerebras capacity by 2028, and the deal structure could allow contract extensions around that capacity or additional capacity through 2030.
The report added that OpenAI's Ultrafast mode is described as 14 times faster than the standard mode and is being rolled out to a limited group of customers where lower latency is needed. OpenAI also listed potential uses for Ultrafast, including incident response, reliability, financial research, security, customer support and voice, commerce, and live research and experimentation.
Cerebras and OpenAI previously agreed on a $20 billion deal in April to supply servers over the next three years, and OpenAI also committed $1 billion in funding to support Cerebras data center development. The article said Cerebras reported a net loss of $450.5 million in the second quarter, compared with net income of $309 million a year earlier, while total revenues rose 75% to $180 million as cloud and other services revenues increased 282%.