Oracle Corporation (ORCL.US) is certified as a key bargaining chip, can AI chip unicorn Cerebras reboot its listing with the help of the giant's aura?

Notice that as AI chip manufacturer Cerebras pursues its eventual IPO, the company seems to have won an important cloud computing customer: Oracle Corporation (ORCL.US). During an analyst conference call after Oracle Corporation's quarterly earnings report on Tuesday, one of the software vendor's two CEOs, Clay Magouyrk, stated that the company's infrastructure includes Cerebras chips, as well as GPUs from market leaders NVIDIA Corporation and competitor AMD. Magouyrk said, "We build an infrastructure that is flexible and general purpose, capable of supporting workloads of all sizes, from the smallest to the largest. We continuously offer the latest accelerators, from the latest products from NVIDIA Corporation and AMD to emerging designs from companies like Cerebras and Positron (another AI hardware startup)." Cerebras offers cloud services using its large-scale WSE-3 chip. The company had filed for an IPO in 2024 but withdrew it in October last year. A few days later, the company announced it had raised $1.1 billion, valuing it at $8.1 billion; CEO Andrew Feldman stated that Cerebras still plans to go public. One of the significant concerns in Cerebras' original prospectus for potential investors was its dependency on a single Middle Eastern customer. G42, supported by Microsoft Corporation and based in Abu Dhabi in the United Arab Emirates, contributed 87% of Cerebras' revenue in the first half of 2024. Expansion of partnerships Adding a name like Oracle Corporation to its client list could be a huge boost for Cerebras, particularly following a significant announcement earlier this year. In January, Cerebras announced commitments of $10 billion from OpenAI and other companies, with OpenAI relying on cloud services from companies like Oracle Corporation. The following month, OpenAI announced a collaboration with Cerebras to launch a research preview of Codex-Spark for ChatGPT Pro customers, a fast-response AI model designed for software development. Oracle Corporation held the earnings call after announcing better-than-expected performance. The company raised its guidance for the 2027 fiscal year and stated that its remaining performance obligations (RPO) had more than tripled from a year ago to $553 billion. After mentioning Cerebras and other chip manufacturers, Magouyrk said, "Overall, we are confident that our investments in data center, computing power, and customer relationships will only become more valuable over time." Market competition and inference technology While Cerebras is trying to compete as a newcomer with the world's highest-valued companies, the market it operates in has an almost insatiable demand for computing power as AI model developers continue to scale up rapidly to meet user demands. NVIDIA Corporation is using its substantial cash reserves to expand into new product areas. In December of last year, the company acquired the core assets of AI chip startup Groq for about $20 billion. NVIDIA Corporation plans to unveil a new architecture at the GTC developer conference in California next week that draws on Groq technology. Magouyrk mentioned during the conference call that there would be some "key releases" at GTC. He also stated that responding to requests not only requires strategically placed data centers but also innovative technology. "It depends on the type of hardware deployed, which is why you see so much innovation happening around these AI accelerators," he said. "If you look at what Groq, Cerebras, or Positron are doing, all these different types of customers are asking: how can we not only reduce inference costs but also significantly reduce inference latency?"