They’re quite likely to survive, even in a worst case scenario. AI isn’t going away and we still need hardware to run it. And in a worst case scenario they still have an inventory that keeps a certain value. For a pure AI company like OpenAI or Anthropic, in a worst case scenario their $100B could be worth 0 the next day. There’s no inventory to sell out like they could in the housing crisis in 2008 or with internet infrastructure during dotcom.
Those who sell shovels during a gold rush are generally safe. They might be overvalued during the bubble, but the shovels aren’t going away. IMO from the little info I have on Cerebras it looks like they’re even better positioned since their hardware is uniquely solving AI efficiency. During a market correction people start caring very much about efficiency and is almost entirely allergic to anything that smells of hype. If they need AI hardware they want the efficient ones.
They’re quite likely to survive, even in a worst case scenario. AI isn’t going away and we still need hardware to run it. And in a worst case scenario they still have an inventory that keeps a certain value. For a pure AI company like OpenAI or Anthropic, in a worst case scenario their $100B could be worth 0 the next day. There’s no inventory to sell out like they could in the housing crisis in 2008 or with internet infrastructure during dotcom.
Those who sell shovels during a gold rush are generally safe. They might be overvalued during the bubble, but the shovels aren’t going away. IMO from the little info I have on Cerebras it looks like they’re even better positioned since their hardware is uniquely solving AI efficiency. During a market correction people start caring very much about efficiency and is almost entirely allergic to anything that smells of hype. If they need AI hardware they want the efficient ones.