Cerebras Systems Inc. (NASDAQ:CBRS) CEO Andrew Feldman said Tuesday the biggest constraint on artificial intelligence growth is no longer chip supply or customer demand, but the availability of data centers needed to deploy AI infrastructure at scale.
AI’s Bottleneck Has Changed
Speaking at the company’s first earnings call, Feldman said the company is actively in search of additional capacity to deploy AI systems, describing access to data center infrastructure as the industry’s most pressing challenge.
“Demand is not the constraint. Supply is not the constraint. The constraint is data centers,” Feldman said.
Technology companies have been continuing to invest billions of dollars into AI infrastructure, while data center operators race to secure power, land and construction capacity to support new facilities.
Hunting For Capacity Around The World
Feldman said Cerebras is searching globally for additional data center capacity, with discussions spanning markets from France and the Nordics to the UAE, India, Middle East, Singapore, Australia and Indonesia.
“We have new data centers coming on board in Q3, Q4, Q1, Q2, Q3, Q4 of next year, and are adding more. We’re in discussions with literally dozens of different data center owner operators,” he added.
AI Infrastructure Spending Continues To Climb
Feldman’s remarks underscore a broader shift in the AI industry, where attention is increasingly moving from chips to the infrastructure required to deploy them.
Goldman Sachs expects global data center demand to increase 50% by 2027 as AI workloads consume a growing share of computing capacity worldwide.
The buildout is already accelerating, with Meta Platforms Inc (NASDAQ:META) outlining plans for multiple multi-gigawatt AI clusters as competition among technology companies intensifies.
Results Top Expectations
Cerebras reported a quarterly loss of 4 cents per share on revenue of $193.4 million, beating analyst estimates for a loss of 16 cents per share and revenue of $181.6 million, according to Benzinga Pro data.
The company also guided for fiscal-year core revenue of $855 million to $865 million, representing about 69% year-over-year growth at the midpoint, with core gross margin expected to be between 38% and 41%.
Price Action: Shares of CBRS closed 1.02% higher on Tuesday at $226.72, but fell by 11.33% in after-hours trading.
Benzinga edge rankings indicate CBRS has a negative price trend in the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Samuel Boivin on Shutterstock.com
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