Cerebras Systems signed an important cloud deal with Microsoft, and its CEO said new deals enable the company to raise guidance across the board. The company expects revenue to triple in 2027, while data center capacity limits cloud revenue growth.
Cerebras Systems CEO said the company signed an important cloud deal with Microsoft and that new deals enable it to raise guidance across the board. The company continues to see revenue tripling in 2027 with expanding gross margins; its CFO expects Q4 cloud revenue to be flat sequentially, limited entirely by data center capacity. The CEO said Cerebras secured about 700 gross megawatts of data center capacity for delivery by the end of 2027 and expects to exit 2026 with more than 10 times its manufacturing capacity at the start of the year.
The CEO said Cerebras is behind schedule on initial OpenAI capacity tranches because of delays in contracting for data center capacity, which remains a constraint across the industry. The company expects hardware margins to improve over the next several quarters and eventually exceed its long-term target of 60%. CS4 will soon be in full production, doubling performance and throughput, and its next-generation Wafer-Scale Engine 5 taped out on June 15.
