Oracle will provide cloud services based on computers from Cerebras Systems Inc. in its data centers, giving the emerging company challenging NVIDIA (NVDA)'s dominance in the artificial intelligence hardware sector yet another major customer.
Cerebras sells computers built on its unique component design approach 鈥?it uses massive chips that take up an entire silicon wafer typically used to manufacture multiple processors. Cerebras says this allows its products to generate effective results for AI queries far faster than competing products.
The two companies said in a statement on Tuesday that Oracle Cloud Infrastructure will begin deploying these devices in the first half of 2027. Following the announcement, Cerebras shares rose as much as 10%. Since the company's listing in May, through Monday's close, the stock had fallen 41%.
Cerebras has already secured well-known customers including OpenAI and Amazon's cloud business. According to the average of analyst estimates, the company's revenue is expected to grow to nearly $3 billion next year, roughly triple this year's figure. But that outlook is still not enough to ease investor concerns, as Cerebras seeks to carve out a place in a market crowded with competitors and where NVIDIA (NVDA) products generate nearly $100 billion in quarterly revenue. Cerebras listed in May and is expected to generate less than $1 billion in full-year revenue this year. Oracle, which is holding its annual technology conference, did not disclose how many Cerebras products it plans to adopt.
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