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AI chipmaker Cerebras namedropped by Oracle, alongside Nvidia and AMD

admin — Wed, 11 Mar 2026 01:49:00 +0000

As AI chipmaker Cerebras angles for an eventual IPO, the company appears to have landed a significant cloud-computing customer: Oracle.

On a conference call with analysts on Tuesday following Oracle’s quarterly earnings, Clay Magouyrk, one of the software vendor’s two CEOs, indicated that his company’s infrastructure includes Cerebras chips, alongside graphics processing units (GPUs) from market leader Nvidia and rival Advanced Micro Devices.

“We build infrastructure which is flexible, fungible, and can support the smallest workloads up to the largest,” Magouyrk said. “We continually offer the latest in accelerators, from the most recent Nvidia and AMD options to emerging designs from companies like Cerebras and Positron,” another AI hardware startup.

Cerebras offers cloud services that employ its large-scale WSE-3 chips. The company filed paperwork for an IPO in 2024 but withdrew the filing last October. Days later, it announced a $1.1 billion funding round at a valuation of $8.1 billion, and CEO Andrew Feldman said Cerebras still intends to go public.

For prospective investors, one of the most glaring concerns from Cerebras’ original prospectus was its reliance on a single customer based in the Middle East. G42, backed by Microsoft, is headquartered in Abu Dhabi, United Arab Emirates, and in the first half of 2024, it accounted for 87% of Cerebras’ revenue.

Bolstering its client roster with a name like Oracle could be a big boon for Cerebras, and it would follow another significant announcement earlier this year. In January, Cerebras said it had received a $10 billion commitment from OpenAI, which relies on Oracle, and other companies, for cloud services. The next month, OpenAI said it was collaborating with Cerebras on a research preview of Codex-Spark, a fast-acting AI model geared toward software development, for ChatGPT Pro customers.

Oracle didn’t immediately respond to a request for comment, and its price list does not mention a Cerebras option. Cerebras didn’t immediately provide a comment.

Oracle’s earnings call came after the company reported better-than-expected results, lifted its fiscal 2027 guidance and said remaining performance obligations more than quadrupled to $553 billion from a year earlier.

“Altogether, we are confident that the investments we make now in data centers, compute capacity and customer relationships will only grow more valuable over time,” Magouyrk said, after naming Cerebras and other chipmakers.

While Cerebras is trying to compete as an upstart against the world’s most valuable company, it’s playing in a market with seemingly insatiable demand for computing power as AI model developers scale to quickly respond to the needs of users.

Nvidia is using its mammoth cash pile to expand into new product areas. In December, the company bought key assets from AI chip startup Groq for about $20 billion. Nvidia plans to announce a new architecture drawing on Groq at its GTC developer conference in California next week, The Wall Street Journal reported.

Magouyrk said on the call that GTC will feature some “key announcements.” He also said that speed in responding to incoming requests requires innovative technology in addition to strategically located data centers.

“It’s the type of hardware that’s being deployed, and that’s why you’re seeing so much innovation going on around these AI accelerators,” he said. “If you look at what Groq does, or Cerebras or Positron, all of these different types of customers are saying, well, not only how do we reduce the cost of inferencing, but also, how can we significantly reduce the latency of it?”

WATCH: OpenAI unveils first AI model running on Cerebras chips

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AMD Q3 earnings report 2025

admin — Wed, 05 Nov 2025 04:19:37 +0000

AMD CEO Lisa Su speaks at a Senate Commerce, Science, and Transportation Committee hearing in Washington on May 8, 2025. The leaders of some of the biggest technology and artificial intelligence companies will go to Congress on Thursday with a wish list of sorts that at its top has doing away with regulation they say inhibits their firms’ growth and by default, sends business to China.

Nathan Howard | Bloomberg | Getty Images

Advanced Micro Devices reported fiscal third-quarter results that exceeded Wall Street expectations, but gave margin guidance was inline with estimates. The stock fell almost 5% in extended trading.

Here’s how the company did in comparison with LSEG consensus:

Earnings per share: $1.20 adjusted vs. $1.16 expected
Revenue: $9.25 billion vs. $8.74 billion expected

Revenue increased 36% from a year earlier in the fiscal third quarter, which ended on Sept. 27, according to a statement.

Net income climbed to $1.24 billion, or 75 cents per share, from $771 million, or 47 cents per share, a year earlier.

For the fourth quarter, AMD expects about $9.6 billion in revenue, implying 25% growth. That’s above LSEG’s $9.15 billion consensus. AMD sees an adjusted gross margin of 54.5% for the quarter, meeting StreetAccount’s consensus of 54.5%.

AMD, which is trying to keep pace with Nvidia in the market for artificial intelligence processors, said the guidance does not include revenue from shipments of its Instinct MI308 chips to China. Executives said the same thing last quarter.

This time, though, AMD indicated that revenue from those chips could be coming.

“We have received some licenses for MI308, so we’re appreciative of the administration supporting some licenses for MI308,” AMD CEO Lisa Su told analysts on a conference call. “We’re still working with our customers on the demand environment and sort of what the overall opportunity is.”

As of Tuesday’s close, AMD shares were up 107% so far this year, while the Nasdaq is up 21%.

AMD reached a deal with OpenAI last month that could see the AI startup company take a 10% stake in the chipmaker. OpenAI will deploy 6 gigawatts of AMD’s Instinct graphics processing units over multiple years and across multiple generations of hardware, the companies said, beginning with an initial 1-gigawatt rollout of chips in the second half of next year.

For years OpenAI and other companies relied on graphics chips from Nvidia for running large-scale AI models.

“We expect this partnership will significantly accelerate our data center AI business with the potential to generate well over $100 million in revenue over the next few years,” Su said. The AI business is on a path toward generating tens of billions in annual revenue in 2027, she said.

Also in October, Oracle announced plans to deploy 50,000 AMD Instinct MI450 AI chips in its cloud starting next year.

AMD’s data center business, which includes standard central processing units and GPUs for AI, generated $4.34 billion in fiscal third-quarter revenue, up 22%. Analysts polled by StreetAccount were looking for $4.13 billion.

Client revenue reached $2.75 billion, which was up 46% and more than StreetAccount’s $2.61 billion consensus. Revenue from gaming totaled $1.30 billion, up 181%. StreetAccount’s consensus was $1.05 billion.

Microsoft and Sony ramped up production of their respective Xbox and PlayStation video game consoles ahead of the holiday season, leading to growth in semi-custom chip revenue for AMD, Su said.

Amazon, a key cloud customer for AMD, disclosed in a Tuesday filing that it had sold all 822,234 of its AMD shares as of Sept. 30. Amazon built the position sometime in the first quarter.

WATCH: AMD CEO on new $1 billion AI supercomputer partnership with the Department of Energy

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AMD stock continues rally after OpenAI deal, now up 43% this week

admin — Thu, 09 Oct 2025 00:51:24 +0000

Lisa Su, chair and chief executive officer of Advanced Micro Devices Inc. (AMD), during a Bloomberg Television interview in San Francisco, California, US, on Monday, Oct. 6, 2025.

David Paul Morris | Bloomberg | Getty Images

AMD stock climbed 11% on Wednesday, continuing a massive run since OpenAI announced plans to buy billions of dollars of AI equipment from the chipmaker earlier this week.

On Monday, the ChatGPT maker entered into an agreement to potentially own 10% of AMD, based on its stock price and partnership milestones.

AMD now has a market cap of $380 billion after climbing 4% on Tuesday and 24% on Monday. Shares are up 43% so far this week, on pace for the best weekly gain since April 2016.

The partnership with OpenAI, which has historically been closely linked with Nvidia, has bolstered investor confidence that AMD will be a viable competitor to Nvidia in AI chips.

AMD CEO Lisa Su told reporters on Monday that the deal was a “win-win” and that its AI chips were good enough to be used in “at-scale deployments,” or very large data centers like the kind OpenAI and cloud providers build.

Nvidia CEO Jensen Huang on Wednesday reacted to the deal on CNBC’s Squawk Box, saying it was “surprising.”

“It’s imaginative, it’s unique and surprising, considering they were so excited about their next-generation product,” Huang said. “I’m surprised that they would give away 10% of the company before they even built it. And so anyhow, it’s clever, I guess.”

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AMD 5-day stock chart.

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Nvidia, AMD to pay 15% of China chip sale revenues to US: report

admin — Mon, 11 Aug 2025 02:15:55 +0000

Nvidia and AMD have agreed to give the US government 15% of their revenues from chip sales in China, under an arrangement to obtain export licenses for the semiconductors, the Financial Times reported on Sunday.

The revenue share applies to Nvidia’s H20 chips and AMD’s MI308 chips, the report said, citing a US official, adding that the Trump administration had yet to determine how to use the money.

The chipmakers agreed to the arrangement as a condition for obtaining export licenses for the Chinese market that were granted last week, FT reported.

Nvidia follows the rules set by the US government for its participation in markets around the world, a spokesperson said. gguy – stock.adobe.com

Nvidia follows rules the US government sets for its participation in worldwide markets, an Nvidia spokesperson told Reuters in an emailed statement. “While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide.”

AMD did not immediately respond to a request for comment.

The revenue share applies to Nvidia’s H20 chips and AMD’s MI308 chips, the Financial Times reported. REUTERS

The Commerce Department started issuing licenses to Nvidia to export its H20 chips to China last week, removing a significant hurdle to the artificial intelligence bellwether’s access to a key market.

The US last month reversed an April ban on the sale of the H20 chip to China. The company had tailored the microprocessor specially to the Chinese market to comply with the Biden-era AI chip export controls.

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AMD shares rise 10% after analysts say they expect a ‘snapback’

admin — Mon, 16 Jun 2025 20:17:47 +0000

AMD CEO Lisa Su unveils the AMD vision for Advancing Al.

Courtesy: AMD

Shares of Advanced Micro Devices rose nearly 9% on Monday after analysts at Piper Sandler lifted their price target on the stock on optimism about the chipmaker’s latest product announcement.

The analysts said they see a snapback for AMD’s graphics processing units, or GPUs, in the fourth quarter. That’s when they expect the chipmaker to be through the bulk of the $800 million in charges that AMD said it would incur as a result of a new U.S. license requirement that applies to exports of semiconductors to China and other countries.

Last week, AMD revealed its next-generation artificial intelligence chips, the Instinct MI400 series. Notably, the company unveiled a full-server rack called Helios that enables thousands of the chips to be tied together. That chip system is expected to be important for AI customers such as cloud companies and developers of large language models.

AMD CEO Lisa Su showed the products on stage at an event in San Jose, California, alongside OpenAI CEO Sam Altman, who said they sounded “totally crazy.”

“Overall, we are enthused with the product launches at the AMD event this week, specifically the Helios rack, which we think is pivotal for AMD Instinct growth,” the analysts wrote in their note.

Piper Sandler raised its price target for AMD’s share price from $125 to $140.

The stock jumped past $126 on Monday to close at its highest level since Jan. 7, before President Donald Trump announced sweeping new tariffs and AMD warned of the chip control charges.

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