News & Updates
The latest news and updates from companies in the WLTH portfolio.
Cerebras CEO Andrew Feldman Says Elon Musk Found a 'Pretty Good Idea' in Leasing SpaceXAI's Unused Grok Capacity to Anthropic
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Cerebras Systems Inc. CEO Andrew Feldman says SpaceXAI, formerly xAI, moved into rented AI computing because its processors were not busy enough, as Grok drew less usage than expected. Feldman Blames Grok's Weak Early Adoption Speaking with Molly O'Shea on the Sourcery podcast on Monday, Feldman explained that Musk's company pivoted to an operator that rents out AI infrastructure because its Grok model struggled with early enterprise market adoption, leaving billions of dollars in hardware sitting idle. "You have to ask why they had available capacity," Feldman said. "They had available capacity because the Grok model wasn't used very much." Cerebras CEO @andrewdfeldman explains why @elonmusk and SpaceXAI made a deal to lease GPUs to Anthropic: "You have to ask why they had available capacity... They had available capacity because the Grok model wasn't used very much." "They had these GPUs sitting around, and... https://t.co/1IHsE98NR3 pic.twitter.com/ssomhhLJJl -- sourcery (@sourceryy) July 13, 2026 Trending: Avoid the #1 Investing Mistake: How Your 'Safe' Holdings Could Be Costing You Big Time Feldman said SpaceXAI could not afford to leave equipment idle. "They had these GPUs sitting around, and that's a bad idea," he said. He pointed to IPO-bound Anthropic's agreement to use SpaceX's Colossus 1 data center in Memphis, Tennessee. Anthropic said the site provides more than 300 megawatts through over 220,000 Nvidia GPUs, allowing it to double Claude Code limits, remove peak-hour reductions and raise API ceilings. "They leased a whole block of them to Anthropic, and looked up and said, 'Whoa, that's a pretty good idea,'" Feldman said. "We had all these GPUs. Our model wasn't a success, but we can have a great business by stepping into what is a constrained market." Anthropic Deal Monetizes Idle GPU Capacity In May, Anthropic agreed to pay $1.25 billion per month for Colossus and Colossus II capacity through May 2029. Both sides can terminate with 90 days' notice, and Musk described the arrangement as a six-month lease, leaving its long-term value uncertain. See Also: Skip the Regrets: The Essential Retirement Tips Experts Wish Everyone Knew Earlier. Colossus 1 supported Grok's development, but Reuters described its capacity as unused prior to the Anthropic agreement. SpaceXAI said Grok 4.5 trained across tens of thousands of Nvidia GB300 processors.
Nvidia vs Cerebras: Which Is the Better Discount AI Buy Now?
Nvidia (NASDAQ: NVDA) and Cerebras Systems (NASDAQ: CBRS) both offer something in great need right now: the high-powered compute to fuel artificial intelligence (AI) workloads. Nvidia is the better-known of the two, having been in the chip space for more than 30 years, and today dominates the AI chip market. Cerebras is an exciting new player with a very powerful chip. Both of these companies could make an interesting investment, and they have seen their shares decline from highs in recent times. This presents a potential buying opportunity. But which is the better discount AI buy right now? Let's find out. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " The case for Nvidia Nvidia hardly needs an introduction these days. The company has made headlines since the start of the AI boom as its comments set the tone for what happens next in this market. Nvidia designs the world's most sought-after graphics processing units (GPUs), the key chips needed to power essential tasks like the training and inference of models. The company was first to enter this market and has made innovation a focus -- that's helped it stay ahead of rivals. In fact, Nvidia updates its GPUs on an annual basis, and the next update is right around the corner. The company aims to ship its Vera Rubin platform later this year, and it will offer an important new product: the stand-alone central processing unit (CPU). This opens up a new $200 billion market to Nvidia, and the company plans on conquering it. In its latest earnings report, it predicted $20 billion in stand-alone CPU sales this year and said it was on track to dominate this market. Meanwhile, Nvidia has proven its strength over time, and in recent years has delivered quarter after quarter of double- or triple-digit earnings gains. And earnings have reached record levels amid this AI boom. All of this is likely to continue, considering the sustained level of demand and the idea that AI is in its early days of real-world use. The case for Cerebras Cerebras may not be a household name like Nvidia, but the company's technology might quickly put it on the radar screens of many investors. This player has designed a giant chip, its wafer-scale engine (WSE), that it says delivers speeds faster than today's GPUs. How has Cerebras accomplished this? By making the WSE 58 times larger than Nvidia's B200 chip.
Cerebras (CBRS) Makes a Massive Bet on Europe's AI Boom
With an upside potential of 60.19%, Cerebras Systems Inc. (NASDAQ:CBRS) is among the 12 Strong Buy Stocks with High Upside According to Analysts. On July 9, Cerebras Systems Inc. (NASDAQ:CBRS) announced a major expansion of its European infrastructure footprint, revealing plans to bring its first European data center capacity online by the end of 2026. The company intends to rapidly scale operations across France and the Nordic region, targeting a total capacity of 200 megawatts by the end of 2027. A portion of this infrastructure is expected to support workloads from OpenAI under the company's existing partnership. According to management, the expansion will place Cerebras' high-speed AI inference capabilities closer to European customers, addressing growing demand for locally hosted artificial intelligence compute resources while strengthening the company's global presence. Earlier, on June 30, Freedom Capital initiated coverage of Cerebras Systems Inc. (NASDAQ:CBRS) with a Hold rating and a $209 price target. The firm noted that the stock experienced significant volatility following first-quarter results, declining sharply and trading as low as $161. Despite highlighting meaningful operational risks associated with the company's rapid expansion strategy, Freedom Capital stated that the recent selloff has created a more attractive entry point for investors. The analyst believes the market may now be underappreciating the company's long-term opportunities within the AI infrastructure sector. Founded in 2015 and headquartered in Sunnyvale, California, Cerebras Systems Inc. (NASDAQ:CBRS) develops wafer-scale processors and artificial intelligence supercomputers designed to dramatically accelerate AI training and inference workloads. Its proprietary architecture enables customers to process complex AI models more efficiently, positioning the company as a differentiated provider of next-generation computing infrastructure. While we acknowledge the potential of CBRS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Disclosure: None. Follow Insider Monkey on Google News.
Cerebras (CBRS) Makes a Massive Bet on Europe's AI Boom
With an upside potential of 60.19%, Cerebras Systems Inc. (NASDAQ:CBRS) is among the 12 Strong Buy Stocks with High Upside According to Analysts. On July 9, Cerebras Systems Inc. (NASDAQ:CBRS) announced a major expansion of its European infrastructure footprint, revealing plans to bring its first European data center capacity online by the end of 2026. The company intends to rapidly scale operations across France and the Nordic region, targeting a total capacity of 200 megawatts by the end of 2027. A portion of this infrastructure is expected to support workloads from OpenAI under the company's existing partnership. According to management, the expansion will place Cerebras' high-speed AI inference capabilities closer to European customers, addressing growing demand for locally hosted artificial intelligence compute resources while strengthening the company's global presence. Earlier, on June 30, Freedom Capital initiated coverage of Cerebras Systems Inc. (NASDAQ:CBRS) with a Hold rating and a $209 price target. The firm noted that the stock experienced significant volatility following first-quarter results, declining sharply and trading as low as $161. Despite highlighting meaningful operational risks associated with the company's rapid expansion strategy, Freedom Capital stated that the recent selloff has created a more attractive entry point for investors. The analyst believes the market may now be underappreciating the company's long-term opportunities within the AI infrastructure sector. Founded in 2015 and headquartered in Sunnyvale, California, Cerebras Systems Inc. (NASDAQ:CBRS) develops wafer-scale processors and artificial intelligence supercomputers designed to dramatically accelerate AI training and inference workloads. Its proprietary architecture enables customers to process complex AI models more efficiently, positioning the company as a differentiated provider of next-generation computing infrastructure. While we acknowledge the potential of CBRS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Disclosure: None. Follow Insider Monkey on Google News.
SpaceX Just Changed the Rules for Every Future IPO. The Market is Now Eyeing These 2 Upcoming IPOs.
The first half of 2026 is over, and nothing has sparked more excitement on Wall Street than blockbuster initial public offerings (IPOs). Investors watched AI chipmaker Cerebras Systems (CBRS) make a stunning debut with its IPO in May, proving that demand for next-generation artificial intelligence (AI) companies remains exceptionally strong. Then came Elon Musk's SpaceX (SPCX), which has long been one of the world's most sought-after private companies. The long-awaited IPO became the largest in history. The company priced its offering at $135 per share on June 11 and began trading on the Nasdaq under the ticker SPCX on June 12, raising $75 billion at an initial valuation of roughly $1.77 trillion. The stock surged 19% on its debut, briefly lifting SpaceX's market cap above $2 trillion. However, shares have now pulled back amid broader concerns about lofty valuations and the company's aggressive spending plans. SPCX stock is still seeing quite a lot of volatility and is down another 6% as of this writing. It is presently trading just a little above its all-time low price. More News from Barchart These 2 Stocks Could Be Next Founded in 2002, SpaceX remained private for a long time. It repeatedly raised tens of billions from private investors and reached an enormous valuation before considering a public listing. After SpaceX's explosive entry, the market is now looking forward to OpenAI and Anthropic's IPOs. Both companies have taken the first formal step by confidentially filing the draft registration statements with the U.S. Securities and Exchange Commission (SEC). A confidential filing lets a company start the IPO review process while keeping its financial statements and offering details private until a later stage. OpenAI Is Taking a Patient Approach OpenAI is an AI company best known for ChatGPT. The company develops generative AI models and software that allow users and businesses to create content, write code, analyze data, and automate complex tasks. Earlier this month, OpenAI confirmed that it had confidentially filed for a U.S. IPO. However, more recently, Reuters reported that OpenAI is considering delaying its IPO until 2027 rather than rushing to market this year, as it seeks a valuation of up to $1 trillion. This could be because of recent investors' caution towards AI stocks that has led to a broader tech selloff. This decision aligns with SpaceX's strategy to remain private until it has reached enormous scale.
Here's What the Street Thinks About Cerebras Systems (CBRS)
Cerebras Systems Inc. (NASDAQ:CBRS) is one of the most promising future stocks to buy right now. Cerebras Systems Inc. (NASDAQ:CBRS) received several rating updates following the release of its strong fiscal Q1 2026 results. Morgan Stanley lifted the price target on the stock to $273 from $250 on June 24 and maintained an Overweight rating on the shares after what the firm called "a strong first quarter out of the gates". It further stated that although the IPO happened recently enough that the firm expected solid results with no surprises, and presumed some IPO conservatism built into forecasts, Morgan Stanley believes that the better gross margin guidance "certainly indicates a conservative guidance mindset." The same day, UBS lifted the price target on Cerebras Systems Inc. (NASDAQ:CBRS) to $320 from $300, maintaining a Buy rating on the shares and stating that the company's first post-IPO earnings call is viewed positively after raised guidance and confirmation of an Amazon (AMZN) agreement. It further told investors in a research note that broader customer diversification and accelerating demand for specialized infrastructure could support strong growth through the decade. Cerebras Systems Inc. (NASDAQ:CBRS) is involved in the design and provision of processors for AI training and inference. The company's products include AI model services, inference, Wafer Scale Engine, cloud, processors, and systems. While we acknowledge the potential of CBRS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Disclosure: None. Follow Insider Monkey on Google News.