Cerebras Systems announced a partnership with cybersecurity company CrowdStrike Holdings on Wednesday that should help the chip maker gain the market's trust.
CrowdStrike will use Cerebras' artificial-intelligence chips to help power its Falcon AI Detection and Response, or AIDR, platform. Cerebras will also use Falcon to secure its own technology.
The pair described the collaboration as a way to improve the speed of enterprise cybersecurity response. Cerebras, which completed its initial public offering in May, has emphasized computing speed when marketing its enormous foot-long chips.
"Security cannot wait in the queue for slow AI while an attack unfolds," said Naor Penso, chief information security officer at Cerebras. "Every millisecond matters."
Cerebras stock was up 5.8% to $220.71 in morning trading after soaring as high as 17% earlier in the session. Shares were up from an IPO price of $185, but a first-day closing price of $311.07 remains the stock's high watermark.
The CrowdStrike deal will help diversify a revenue mix that looked frighteningly concentrated.
Group 42 and Mohamed bin Zayed University of Artificial Intelligence, two UAE-based organizations affiliated with the Emirati government, accounted for a combined three-quarters of revenue in the March quarter. The company also reached a deal with OpenAI late last year.
Each new customer is also a vote of confidence in Cerebras' hardware, which, despite its undoubted speed, has a much shorter track record than competitors such as Nvidia and Advanced Micro Devices.
CrowdStrike stock fell 2% to $187.30 on Wednesday.
Write to Nate Wolf at nate.wolf@barrons.com
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July 22, 2026 11:40 ET (15:40 GMT)
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