Cerebras Systems Inc. (NASDAQ:CBRS) has doubled down on its push to challenge Nvidia Corp (NASDAQ:NVDA) in AI inference with a new server system built around its massive wafer-scale chips.
Cerebras Unveils New CS-4 AI Server
On Tuesday, Cerebras unveiled the CS-4, a rack-scale AI system powered by three of its Wafer Scale Engine-3 Turbo chips and designed to speed up response generation from AI models.
The system is based on Cerebras’ Nexus architecture and uses upgraded networking components to improve data movement between chips.
The company’s chips are substantially larger than conventional AI processors, allowing more data to remain on a single chip and reducing the energy and time required to move information between processors.
Built using Taiwan Semiconductor Manufacturing Co.’s (NYSE:TSM) 5-nanometer process, the CS-4 also has 50% fewer components than previous designs, which Cerebras says could help data centers deploy the systems faster.
The company expects the new system to become available in the third quarter.
Cerebras Targets Nvidia With Faster AI Inference
Cerebras is targeting AI inference, the computing process behind generating answers from chatbots such as Anthropic’s Claude, Reuters reported.
The company says the CS-4 can deliver up to 30 times faster inference than GPU-based systems under certain workloads.
CEO Andrew Feldman said Cerebras expects to deliver 600 megawatts of computing capacity by the end of 2027. He also expects performance to improve fourfold and throughput to increase 20 times by then.
The company is also working with Amazon.com, Inc. (NASDAQ:AMZN) Web Services, with Cerebras solutions expected to become available through AWS Bedrock in the first quarter of 2027.
Cerebras Revenue Misses Estimates
The company’s latest earnings report showed $180.11 million in sales, below the $194.20 million analyst consensus. Core revenue, however, jumped 103% year over year to $209.9 million.
Cerebras expects third-quarter core revenue of $214 million to $216 million, with a gross margin of 38% to 40%.
Price Action: Cerebras Systems closed at $220.01 on Tuesday, down 12.69%. The shares fell another 1.32% to $217.10 in after-hours trading, according to Benzinga Pro.
Benzinga Edge ranks Cerebras favorably, with the stock maintaining positive price trends across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Samuel Boivin on Shutterstock.com
Login to comment