Cerebras Systems co-founder and CEO Andrew Feldman discusses the company’s Q2 earnings, its WSE AI chip and its $20 billion partnership with OpenAI on ‘The Claman Countdown.’ #fox #media #breakingnews #us #usa #new #news #breaking #foxbusiness #theclamancountdown #cerebras #cerebrassystems #andrewfeldman #ai #artificialintelligence #technology #tech #aichip #semiconductors #openai #business #earnings #partnership #innovation #computing
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What Andrew Feldman said
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Andrew Feldman, CEO of Cerebras Systems, discussed the company's Q2 2026 results amid a 13.5% stock drop. He highlighted revenue growth of 103% year-over-year, cloud business quadrupling, and gross margins beating consensus by 400 basis points, plus operating margins ahead by 1,500 basis points. He emphasized core revenue excluding pass-through items and downplayed the loss, attributing the pullback to an extraordinary run. He described the WSE chip as dinner-plate-sized and 15 times faster, and cited a partnership with a model called Soul, with commitments north of $20 billion, delivering speeds unachievable by other hardware. He noted demand is constrained by data center availability and that the hardware renaissance was unexpected. Feldman raised guidance for year-end and predicted more than tripling revenue next year.
Key takeaways
Cerebras raised guidance and expects to more than triple revenue next year, per Feldman.
The company's WSE chip is dinner-plate-sized and 15 times faster than typical processors.
A partnership with the Soul model involves commitments north of $20 billion.
Gross margins beat consensus by 400 basis points; operating margins by 1,500 basis points.
6:32Get through the cloud exposure to the hardware?
7:30But would you ever, 19 years ago, have imagined the explosion in artificial intelligence would turn this entire business and sector into something never seen before?
AI chipmaker feeling pain this hour, stock down 13 and a half percent right now. Disappointing quarter. Revenue of $180 million missed the $194 million they were looking for, but also swung from a $309.5 million profit a year ago to a $450.5 million net loss in the second quarter. Sales down 23% to $54.1 billion. There is a flip side, though: revenue rose 103% year-over-year, and the cloud business nearly quadrupled. So let's find out what's going on with the head of the company that saw its stock skyrocket during its IPO this past May. Co-founder and CEO Andrew Feldman, thanks for coming on the show.
How should investors look at the numbers superimposed over the weak quarter? Because on the surface, it appears they are wondering whether the cloud business is cannibalizing your hardware business.
We were happy with the quarter and will be focused on all the successes. Revenue up 103%. Cloud business, while a subset, was up and it quadrupled. Gross margins beat by a lot, 950 basis points north of last year and 400 points north of consensus. We beat on operating margins, not by a little bit, but 1,500 basis points. So we were pleased with the results, always seeking to do better, but the core parts of the business, we encourage people to evaluate us on those metrics.
We don't assume viewers understand core revenue, and that's what you like to focus on. So core revenue excludes the pass-through revenue, not from customers, and passes along to an outside cost, such as power, space, and hosting. I am reading that because we didn't know what it was, so we wanted to educate our viewers. Yet people thought of you as an interesting company that is hyper-fast and almost a rival to NVIDIA.
It's the size of a dinner plate. Big chips process information more quickly and deliver results in less time, so dramatically faster, 15 times faster. In the helpless carve-out, vast difference. And as AI has matured and moved from novelty to useful, people jumped on this train. Useful work to be passed, and that's why business is booming and why we see so much demand.
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Feldman, A. (2026, August 13). Cerebras claims its WSE AI chip is the LARGEST in the world [Interview transcript]. Fox Business. CEOInterviews.AI. https://ceointerviews.ai/interview/1353493/
MLA
Andrew Feldman. "Cerebras claims its WSE AI chip is the LARGEST in the world." Fox Business, 13 Aug. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1353493/.
BibTeX
@misc{feldman2026_1353493,
author = {Andrew Feldman},
title = {Cerebras claims its WSE AI chip is the LARGEST in the world},
howpublished = {Interview transcript, Fox Business. CEOInterviews.AI},
year = {2026},
month = {aug},
url = {https://ceointerviews.ai/interview/1353493/},
note = {Speaker-attributed transcript with timestamps}
}
