Cerebras Shares Rise 6.3% After Altman Reaffirms OpenAI Partnership
The premarket rebound follows a hardware-choice scare. Citi kept its revenue outlook unchanged but pointed to stabilizing gross margins as the stock’s next test.
Loading page…
The premarket rebound follows a hardware-choice scare. Citi kept its revenue outlook unchanged but pointed to stabilizing gross margins as the stock’s next test.
Listen to this story
Altman’s Friday post calling Cerebras a close partner and highlighting work on speed helped ease concern after a report that Nvidia GPUs—not Cerebras chips—would power GPT-6.1 Sol’s “Ultrafast” mode. That mode-specific report did not disclose a cancellation of the broader OpenAI agreement: it calls for 750 megawatts of Cerebras systems, with deployments starting in 2026 and a commitment CNBC values at $10 billion through 2028. Cerebras gained 6.3% to $177 in October 5 premarket trading, but Citi says stabilizing gross margins remains important to the stock’s outlook.
Cerebras shares had fallen 20% the previous week amid concerns about its role in OpenAI’s hardware plans.
Citi analysts kept their 2026–2028 Cerebras revenue outlook unchanged, while expecting new frontier models to run first on labs’ internal chips; that is an expectation, not confirmation.
The stock’s market capitalization was just over $39 billion, below the $95 billion CNBC cited at its May debut.
Cerebras shares were up 6.3% at $177 in premarket trading on October 5, 2026, after OpenAI CEO Sam Altman reaffirmed the companies’ partnership. The rebound followed a sharp sell-off over reports that Nvidia hardware would power an OpenAI model mode, putting Cerebras’s role with a major customer under scrutiny, CNBC reported.
The immediate concern was a specific hardware choice. CNBC reported that Nvidia graphics processing units, or GPUs, rather than Cerebras chips would power the “Ultrafast” mode for GPT-6.1 Sol. Cerebras shares fell 20% the previous week. That report concerned the mode’s hardware, not a disclosed cancellation of the broader OpenAI–Cerebras agreement.
Altman addressed the speculation in a Friday post on X, quoted by CNBC. Shares rose almost 3% in extended trading after his comments, before Monday’s premarket gain. His statement emphasized an ongoing relationship and work on speed, rather than identifying which hardware would serve the disputed mode.
Cerebras is a close partner, and we have a deep engagement pushing on the frontiers of speed.
Sam Altman, in a Friday X post quoted by CNBC
The existing agreement provides the scale behind that reassurance. In its January 14 announcement, Cerebras said the companies had signed a multiyear agreement to deploy 750 megawatts of its systems for OpenAI customers. The deployment was planned in multiple stages beginning in 2026. CNBC puts the deal’s value at $10 billion and says the supply commitment runs through 2028.
OpenAI’s explanation at the time described a mix of systems, not one hardware supplier for every task. In the Cerebras announcement, OpenAI’s Sachin Katti said its strategy was to build “a resilient portfolio that matches the right systems to the right workloads.” He described Cerebras as a dedicated solution for producing model responses with little delay.
Citi analysts took a less alarmed view of the hardware news. In a Friday morning note quoted by CNBC, they said their outlook for Cerebras revenue from 2026 through 2028 remained unchanged. Their reasoning was about rollout order: they expected frontier AI labs’ newest models to appear on internal chips before third-party systems or Cerebras cloud.
That was an analyst expectation, not confirmation of a later Cerebras deployment for this mode. Citi’s more consequential warning concerned earnings quality: the analysts said the stock’s ability to outperform increasingly depended on evidence that gross margins were stabilizing. A further delay in the margin trough could weigh on sentiment, particularly given Cerebras’s premium valuation.
The rebound still left a substantial valuation gap. CNBC put Cerebras’s market capitalization at just over $39 billion, compared with $95 billion during its May debut. Monday’s early gain therefore came against a much larger retreat from the company’s initial public offering.
Loading discussion...
Join the conversation
Explain what makes the reassurance convincing—or insufficient.
Be the first to share a perspective or an experience.
Reader comments
Newest comments first. Replies stay oldest first.