OpenAI Partners with Cerebras to Add 750MW AI Compute Capacity
Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.PARTNERSHIP:OpenAIit is partnering with Cerebras to add 750MW of ultra low-latency AI compute to its platform. Terms were not disclosed. The company stated, "Integrating Cerebras into our mix of compute solutions is all about making our AI respond much faster. When you ask a hard question, generate code, create an image, or run an AI agent, there is a loop happening behind the scenes: you send a request, the model thinks, and it sends something back. When AI responds in real time, users do more with it, stay longer, and run higher-value workloads. We will integrate this low-latency capacity into our inference stack in phases, expanding across workloads." Sachin Katti of OpenAI added, "OpenAI's compute strategy is to build a resilient portfolio that matches the right systems to the right workloads. Cerebras adds a dedicated low-latency inference solution to our platform. That means faster responses, more natural interactions, and a stronger foundation to scale real-time AI to many more people."PURCHASE RULES:China is working to set rules on how many advanced AI chip companies can buy from foreign makers such as Nvidia, Nikkei Asia's Cheng Ting-Fang, Lauly Li, Cissy Zhou, and Yifan Yu. The Chinese central government is working on rules that will likely regulate the total volume of cutting-edge AI chips local companies can purchase, effectively allowing some sales by Nvidia instead of banning them outright, the report says.LIMITED THREAT:RBC Capital analyst Srini Pajjuri initiated coverage of Nvidia with an Outperform rating and $240 price target. The firm sees "limited threat" to Nvidia's full-stack AI dominance, despite the recent progress by ASICs and AMD, the analyst tells investors. The firm expects any hyperscaler capex spending slowdown to be gradual and believes that valuation is already discounting a potential slowdown to an extent, adding that it has higher conviction in Nvidia's order book than that of peers.FUNDING ROUND:Berlin-based customer service AI startup Parloa announced it has raised $350M in Series D funding, bringing its valuation to $3B. The round was led by General Catalyst, with continued support from Parloa's existing investors, including EQT Ventures, Altimeter Capital, Durable Capital Partners, and Mosaic Ventures. Closing just seven months after its Series C, this round brings Parloa's total raised capital to more than $560M in less than four years.LAWSUIT:Oracleis being sued by bondholders who claim they suffered losses because the company failed to disclose it needed to sell significant additional debt in order to create its AI infrastructure, Reuters' Jonathan Stempel. The proposed class action lawsuit was filed in a New York state court in Manhattan on behalf of shareholders who purchased $18B of notes and bonds that Oracle issued in September, two weeks after the company announced a $300B, five-year contract to supply Microsoft-backedOpenAI with computing power, the author notes. The investors involved in the suit allege they were blindsided when the company returned to the capital markets just seven weeks later seeking $38B of loans to fund two data centers to support the OpenAI deal, the author says.AI TRAINING:Wikipedia Foundation, the operator of Wikipedia, has announced, "In the AI era, Wikipedia and its human-created and curated knowledge has never been more valuable. Today, Wikipedia is among the top-ten most-visited global websites, and it is the only one to be run by a nonprofit... Tech companies that rely on Wikipedia content must use it responsibly and help sustain Wikipedia for the future. One key way to do this is through the Wikimedia Enterprise platform. Developed by the Wikimedia Foundation, Wikimedia Enterprise is a commercial product for large-scale reusers and distributors of content from Wikimedia projects. Over the past year, several companies - including Ecosia, Microsoft, Mistral AI, Perplexity, Pleias, and ProRata - became new Wikimedia Enterprise partners, joining existing partners such as Amazon, Google, and Meta. They can access content from Wikimedia projects at a volume and speed designed specifically for their needs, while directly supporting our nonprofit mission."
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Gates Foundation Sells Final Microsoft Shares Amid Philanthropic Commitment
- Reason for Sale: The Gates Foundation recently sold its final 7.7 million shares of Microsoft, valued at approximately $3.2 billion, raising investor concerns; however, this decision stems from a philanthropic commitment rather than a bearish outlook on the company.
- Philanthropic Commitment: The foundation aims to spend its entire endowment by 2045, planning to allocate over $200 billion over the next two decades, necessitating the liquidation of its investments to meet this goal.
- Microsoft's Financial Performance: Despite a year-to-date decline of about 13% in Microsoft stock, the company reported an 18% increase in revenue to $82.9 billion in its latest quarterly report, with diluted earnings per share and net income growing even faster at 23%.
- Investment Outlook: Microsoft maintains a strong competitive moat, and its current valuation metrics have become more appealing, leading analysts to suggest that now may be a good time to establish a position, as long-term holding remains a viable strategy.
Executive Trading Activity: Microsoft and CVS Lead Transactions
- Microsoft Executive Sell-off: Microsoft EVP Amy Coleman sold 1,262 shares at $411.34 each between May 18 and 22, totaling $519,242, which represents a 2.7% reduction in her holdings to 46,003 shares, indicating a cautious outlook on the company's future.
- CVS Major Transaction: CVS Director Larry Robbins disposed of 3,372,000 shares valued at $317 million, reducing his indirect holdings by 41.1% while retaining 4.82 million shares, suggesting a potential shift in confidence regarding the company's prospects.
- ServiceNow Shareholder Adjustment: ServiceNow Director Anita Sands sold 16,445 shares at $90.14 each for a total of $1.48 million, trimming her stake by approximately 35.3% to 30,090 shares, reflecting a strategic response to market volatility.
- AMC and Rivian Accumulation: AMC CEO Adam Aron acquired 250,000 shares at $1.38 each, totaling $344,350, increasing his holdings to 2.44 million shares, demonstrating confidence in the company's growth; concurrently, Rivian Director Aidan Gomez purchased 18,000 shares, indicating optimism in the electric vehicle market.
Microsoft Advances Responsible Technology Development
- Responsible Tech Framework: Microsoft's Trusted Technology Group, established in 2025, consolidates all responsible tech initiatives to ensure fairness, transparency, and inclusivity in tech development, thereby enhancing the company's competitive edge in the rapidly evolving AI market.
- Data Diversity Enhancement: Microsoft purchased over 20 million minutes of multimodal data from nonprofit Be My Eyes to improve AI representation of blind individuals, ensuring generated imagery reflects societal diversity and inclusivity.
- AI and Employment: Despite cutting approximately 15,000 jobs in 2025, Lay-Flurrie notes that AI technology is providing opportunities for marginalized workers, particularly those who are neurodiverse and disabled, enhancing their independence and efficiency in the workplace.
- Feedback and Iteration: Lay-Flurrie emphasizes that continuous feedback and rapid iteration are crucial for improving AI technology, with Microsoft optimizing its products by listening to user feedback to ensure sustainability and adaptability of its technology.
Cerebras IPO Soars 68% on First Day, AI Market Impact
- Impressive IPO Performance: Cerebras' stock surged 68% on its first trading day, reflecting strong investor enthusiasm for AI stocks and potentially setting the stage for future market performance.
- Significant Technological Edge: Cerebras' Wafer Scale Engine 3 (WSE-3) claims to offer 250 times more on-chip memory and 2,625 times more memory bandwidth than Nvidia's B200 package, which could fundamentally alter the landscape of AI processing if widely adopted.
- Major Partnership Agreement: OpenAI has signed a $20 billion multi-year compute capacity agreement with Cerebras, securing up to 750 megawatts of specialized AI infrastructure power and potentially acquiring an 11% equity stake in the company, indicating strong market validation of its technology.
- Market Competition Analysis: Despite Cerebras' promising technology, Nvidia achieved $216 billion in sales over the past year, vastly outpacing Cerebras' $500 million, with Nvidia's non-GAAP net income at $117 billion, underscoring its dominant position in the AI hardware market.
Cerebras IPO Soars 68%, AI Market Competition Intensifies
- Market Dominance: Nvidia commands an impressive 86% of the AI data center revenue market, significantly overshadowing Cerebras' $500 million annual revenue, underscoring its absolute leadership in the industry, even as Cerebras' technological potential garners attention.
- Technological Innovation Potential: Cerebras' new wafer technology claims to be more efficient than Nvidia's, with its Wafer Scale Engine 3 offering 250 times more on-chip memory and 2,625 times more memory bandwidth, potentially reshaping the AI processing landscape, although its long-term impact remains uncertain.
- Investor Enthusiasm: Cerebras' stock soared 68% on its IPO, indicating sustained investor enthusiasm for AI stocks, despite Nvidia's annual sales reaching $216 billion, highlighting its strong profitability and market share advantage.
- Strategic Partnership Opportunity: OpenAI has signed a $20 billion multi-year compute capacity agreement with Cerebras, securing 750 megawatts of AI infrastructure power, showcasing Cerebras' potential influence in the AI sector, even as it faces fierce competition from Nvidia.
Ackman Reduces Alphabet Stake, Increases Microsoft Investment
- Portfolio Shift: Ackman first acquired Alphabet shares in early 2023 and held most until Q1 2026, where he nearly completely divested his $1.9 billion stake, reallocating funds into Microsoft, reflecting his keen sense of market risk-reward dynamics.
- Microsoft Investment Opportunity: Following an over 18% drop in Microsoft's stock due to concerns over slowing cloud growth and surging AI infrastructure spending, Ackman began accumulating Microsoft shares in February 2026, ultimately building a core position of approximately 5.6 million shares, demonstrating confidence in Microsoft's long-term growth potential.
- Market Reaction Analysis: Despite market concerns regarding Microsoft's spending and return on investment speed, Ackman viewed the market's reaction as overly pessimistic, choosing to invest when Microsoft's forward P/E ratios were between 20 and 23, showcasing his value investment strategy.
- Future Outlook: Although Microsoft's stock is down about 23% from its all-time high, analysts have set an average 12-month price target of $560, approximately 34% higher than current trading levels, indicating that Ackman's investment remains attractive and suitable for patient long-term investors.
Gates Foundation Sells Final Microsoft Shares Amid Philanthropic Commitment
- Reason for Sale: The Gates Foundation recently sold its final 7.7 million shares of Microsoft, valued at approximately $3.2 billion, raising investor concerns; however, this decision stems from a philanthropic commitment rather than a bearish outlook on the company.
- Philanthropic Commitment: The foundation aims to spend its entire endowment by 2045, planning to allocate over $200 billion over the next two decades, necessitating the liquidation of its investments to meet this goal.
- Microsoft's Financial Performance: Despite a year-to-date decline of about 13% in Microsoft stock, the company reported an 18% increase in revenue to $82.9 billion in its latest quarterly report, with diluted earnings per share and net income growing even faster at 23%.
- Investment Outlook: Microsoft maintains a strong competitive moat, and its current valuation metrics have become more appealing, leading analysts to suggest that now may be a good time to establish a position, as long-term holding remains a viable strategy.
Executive Trading Activity: Microsoft and CVS Lead Transactions
- Microsoft Executive Sell-off: Microsoft EVP Amy Coleman sold 1,262 shares at $411.34 each between May 18 and 22, totaling $519,242, which represents a 2.7% reduction in her holdings to 46,003 shares, indicating a cautious outlook on the company's future.
- CVS Major Transaction: CVS Director Larry Robbins disposed of 3,372,000 shares valued at $317 million, reducing his indirect holdings by 41.1% while retaining 4.82 million shares, suggesting a potential shift in confidence regarding the company's prospects.
- ServiceNow Shareholder Adjustment: ServiceNow Director Anita Sands sold 16,445 shares at $90.14 each for a total of $1.48 million, trimming her stake by approximately 35.3% to 30,090 shares, reflecting a strategic response to market volatility.
- AMC and Rivian Accumulation: AMC CEO Adam Aron acquired 250,000 shares at $1.38 each, totaling $344,350, increasing his holdings to 2.44 million shares, demonstrating confidence in the company's growth; concurrently, Rivian Director Aidan Gomez purchased 18,000 shares, indicating optimism in the electric vehicle market.
Microsoft Advances Responsible Technology Development
- Responsible Tech Framework: Microsoft's Trusted Technology Group, established in 2025, consolidates all responsible tech initiatives to ensure fairness, transparency, and inclusivity in tech development, thereby enhancing the company's competitive edge in the rapidly evolving AI market.
- Data Diversity Enhancement: Microsoft purchased over 20 million minutes of multimodal data from nonprofit Be My Eyes to improve AI representation of blind individuals, ensuring generated imagery reflects societal diversity and inclusivity.
- AI and Employment: Despite cutting approximately 15,000 jobs in 2025, Lay-Flurrie notes that AI technology is providing opportunities for marginalized workers, particularly those who are neurodiverse and disabled, enhancing their independence and efficiency in the workplace.
- Feedback and Iteration: Lay-Flurrie emphasizes that continuous feedback and rapid iteration are crucial for improving AI technology, with Microsoft optimizing its products by listening to user feedback to ensure sustainability and adaptability of its technology.
Cerebras IPO Soars 68% on First Day, AI Market Impact
- Impressive IPO Performance: Cerebras' stock surged 68% on its first trading day, reflecting strong investor enthusiasm for AI stocks and potentially setting the stage for future market performance.
- Significant Technological Edge: Cerebras' Wafer Scale Engine 3 (WSE-3) claims to offer 250 times more on-chip memory and 2,625 times more memory bandwidth than Nvidia's B200 package, which could fundamentally alter the landscape of AI processing if widely adopted.
- Major Partnership Agreement: OpenAI has signed a $20 billion multi-year compute capacity agreement with Cerebras, securing up to 750 megawatts of specialized AI infrastructure power and potentially acquiring an 11% equity stake in the company, indicating strong market validation of its technology.
- Market Competition Analysis: Despite Cerebras' promising technology, Nvidia achieved $216 billion in sales over the past year, vastly outpacing Cerebras' $500 million, with Nvidia's non-GAAP net income at $117 billion, underscoring its dominant position in the AI hardware market.
Cerebras IPO Soars 68%, AI Market Competition Intensifies
- Market Dominance: Nvidia commands an impressive 86% of the AI data center revenue market, significantly overshadowing Cerebras' $500 million annual revenue, underscoring its absolute leadership in the industry, even as Cerebras' technological potential garners attention.
- Technological Innovation Potential: Cerebras' new wafer technology claims to be more efficient than Nvidia's, with its Wafer Scale Engine 3 offering 250 times more on-chip memory and 2,625 times more memory bandwidth, potentially reshaping the AI processing landscape, although its long-term impact remains uncertain.
- Investor Enthusiasm: Cerebras' stock soared 68% on its IPO, indicating sustained investor enthusiasm for AI stocks, despite Nvidia's annual sales reaching $216 billion, highlighting its strong profitability and market share advantage.
- Strategic Partnership Opportunity: OpenAI has signed a $20 billion multi-year compute capacity agreement with Cerebras, securing 750 megawatts of AI infrastructure power, showcasing Cerebras' potential influence in the AI sector, even as it faces fierce competition from Nvidia.
Ackman Reduces Alphabet Stake, Increases Microsoft Investment
- Portfolio Shift: Ackman first acquired Alphabet shares in early 2023 and held most until Q1 2026, where he nearly completely divested his $1.9 billion stake, reallocating funds into Microsoft, reflecting his keen sense of market risk-reward dynamics.
- Microsoft Investment Opportunity: Following an over 18% drop in Microsoft's stock due to concerns over slowing cloud growth and surging AI infrastructure spending, Ackman began accumulating Microsoft shares in February 2026, ultimately building a core position of approximately 5.6 million shares, demonstrating confidence in Microsoft's long-term growth potential.
- Market Reaction Analysis: Despite market concerns regarding Microsoft's spending and return on investment speed, Ackman viewed the market's reaction as overly pessimistic, choosing to invest when Microsoft's forward P/E ratios were between 20 and 23, showcasing his value investment strategy.
- Future Outlook: Although Microsoft's stock is down about 23% from its all-time high, analysts have set an average 12-month price target of $560, approximately 34% higher than current trading levels, indicating that Ackman's investment remains attractive and suitable for patient long-term investors.
