Cerebras Systems reported strong top-line growth for the second quarter of 2026, but investors focused on a sharp decline in hardware revenue that raised new questions about the consistency of its core chip business. The company posted GAAP revenue of $180.1 million, up 74% year over year, while non-GAAP core revenue reached $210 million, up 103%. Hardware revenue fell 23% to $54.1 million from $70.3 million a year earlier, while cloud computing and other services surged to $126.0 million, up 281%, making cloud the company’s largest revenue stream for the quarter. Cerebras raised both third-quarter and full-year guidance. It expects third-quarter core revenue of $214 million to $216 million, above the $212 million consensus, with core gross margin of 38% to 40%. Full-year 2026 core revenue is now projected at $880 million to $890 million, up from prior guidance of $855 million to $865 million. Still, the market reaction was negative. Shares fell as much as 17% after hours, after closing Wednesday up 11.6%. The earnings release also highlighted the company’s strategic shift toward AI inference services. Cerebras said its systems can support OpenAI’s GPT-5.6 Sol at 750 tokens per second, and that it is working with AMD on a disaggregated inference offering expected to enter production in the fourth quarter of 2026, with Amazon Bedrock integration planned for the first quarter of 2027.

GSK’s global CISO says post-quantum migration has become an urgent enterprise security task, warning that organizations delaying action may fall behind as current encryption standards face future quantum risks.

Cerebras CEO and co-founder Andrew Feldman said demand for AI compute has already been booked out, with the company holding a $25 billion backlog and seeing orders tied to a global buildout of data centers. Speaking on the All-In Podcast aired on July 10, 2026, Feldman argued that this cycle differs from earlier tech booms because customers are not waiting for capacity to appear before committing. He said buyers including OpenAI, Anthropic, SpaceX, Google, Microsoft and AWS are already lining up for more infrastructure. Feldman also framed reasoning as the next major compute sink. He said reasoning workloads consume massive amounts of tokens, making inference speed a central competitive factor, and claimed Cerebras can run 15 times faster in some cases. On open-source AI, he said enterprises increasingly want control, especially in regulated sectors, and described sovereign deployment as a growing priority. Feldman went even further on AGI, saying that by definitions commonly used 20 years ago, the industry has already passed the threshold. In the same conversation, Black Forest Labs CEO and co-founder Robin Rombach said the company is building multimodal models that span image, video, audio and action prediction. He described work with Martin Scorsese on AI-assisted visual ideation and said the longer-term opportunity is not just filmmaking. In his view, the same multimodal model used to create films could also serve as the brain of a robot.

The FTSE 100 surged to a record 10,685, up 117% from its April low, led by Beazley, Schroders, BAE Systems, and Glencore. M&A activity, rising defense spending, and strength in mining stocks have fueled the rally, with markets now watching whether the index can break above 11,000.