Cerebras (CBRS.US) secures major Oracle deal: to be deployed in 2027, share price jumps 10% at one point

Zhitong Finance APP reports that Oracle (ORCL.US) will offer cloud services at its data centers based on Cerebras (CBRS.US) computers, adding another major client for this emerging company challenging Nvidia's dominance in AI hardware. Cerebras sells computers equipped with innovative chip solutions—giant chips built from entire silicon wafers, while normally a single wafer is used to manufacture multiple processors. According to the chip manufacturer, this approach allows its products to deliver meaningful results faster than competitors when handling AI queries (i.e., inference). The two companies stated in a joint declaration on Tuesday that Oracle Cloud Infrastructure will begin deploying the relevant equipment in the first half of 2027.

Clay Magouyrk, Oracle co-CEO, said at the company’s client conference on Tuesday: “Cerebras and SambaNova both offer extremely low-latency inference options.” At its annual event, Oracle announced a series of agreements to expand data center partnerships, with partners including SambaNova Systems Inc., Nvidia, and Intel. Following the news, Cerebras shares once rose by 10%. As of Monday’s close, the stock had fallen by 41% since its listing in May.

Cerebras has already secured well-known clients such as OpenAI and Amazon Web Services. Analysts on average expect the company's revenue to triple next year to nearly $3 billion; whereas annual sales this year are expected to be less than $1 billion. This outlook is still insufficient to dispel investor concerns: Cerebras is seeking to carve out a niche in a fiercely competitive market, while Nvidia’s products generate nearly $10 billion in sales every quarter. Oracle did not disclose how many Cerebras products it plans to use. Known for its database software, the company is investing heavily in building data centers, aiming to become a top provider of AI computing power. Oracle has stated that capital expenditures in the fiscal year ending May 2027 will reach $70 billion.