Cerebras shares drop 14% despite 94% revenue growth, $20B OpenAI deal
Cerebras Systems Inc. reported Q1 revenue up 94% year-over-year and a $20 billion OpenAI partnership, but shares fell 14% on Q2 gross margin guidance of 36-38%, down from 47% in Q1.
Cerebras Systems Inc. reported first-quarter revenue growth of 94% year-over-year and announced a deal valued at more than $20 billion to supply OpenAI with computing power, yet shares dropped 14% in the session following the print [1][2]. The company guided second-quarter core gross margin to 36-38%, a sharp compression from the 47% reported in the first quarter [1]. Full-year margin is expected to recover to 38-41% [1].
The sell-off followed Q2 guidance that reflected near-term margin pressure and elevated capital expenditure, overshadowing the top-line beat and the scale of the OpenAI commitment [1]. Cerebras reported Q1 GAAP revenue of $193.4 million, up 94% year-over-year [2]. The OpenAI deal, worth over $20 billion in total, marks one of the largest compute supply partnerships disclosed in the AI chip sector [2].
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