Cerebras' 68% IPO surge sparks AI chip competition, but Nvidia retains dominance with $216 billion in annual revenue versus Cerebras' $500 million.

Cerebras completed its IPO with stock price soaring 68% on its first day of trading. The company's flagship Wafer Scale Engine 3 (WSE-3)—a large semiconductor that functions as a single chip rather than hundreds of smaller ones—claims 250 times more on-chip memory and 2,625 times more memory bandwidth than Nvidia's B200 package.

OpenAI signed a $20 billion multiyear compute capacity agreement with Cerebras, securing up to 750 megawatts of specialized AI infrastructure power and a potential 11% equity stake in the chipmaker. CEO Sam Altman was also an early investor in Cerebras.

Nvidia holds 86% of the AI data center market by revenue and generated $216 billion in sales in its most recently completed year, compared to Cerebras' $500 million. Nvidia reported $117 billion in non-GAAP net income for the full fiscal year, while Cerebras posted a non-GAAP net loss of $75 million in 2025.