Altimeter Capital founder Brad Gerstner says a company he invested in nearly a decade ago has emerged as one of the most important solutions to the single biggest bottleneck in artificial intelligence today, and the market is beginning to take notice.
In a new CNBC interview, Gerstner says the AI industry has shifted from a world dominated by raw computing power to one where the ability to move data around a chip as fast as possible has become the critical constraint.
Gerstner says Cerebras (CBRS), the wafer-scale chip company Altimeter backed eight to nine years ago, is uniquely positioned to solve it.
“In the early phases, 2023 and 2024, we were solving for pre-training of LLMs. That required a lot of flops. Now, the models themselves to learn, they need to have an inference loop. Agents require inference. And ChatGPT exploded. So the world moved from flops to being able to solve what they call the memory wall, moving KB cache and moving these model weights around on a chip.”
AI inference is the process of using a trained machine learning model to make real-world predictions, decisions or generative outputs based on new and unseen data.
According to Gerstner, Cerebras could help alleviate the broader chip constraint choking AI giants like OpenAI and Anthropic.
“The one thing you heard on all those calls, whether it was Amazon or Google: we are compute-constrained. Our revenues would be higher if we weren’t compute constrained. Anthropic is compute-constrained. OpenAI is compute-constrained. Cerebras will help solve part of that constraint.
The challenge for Cerebras is: can we find the power? Can we find the data centers to stand up all of this in order to support it?”
CBRS debuted on the Nasdaq at $185 today and soared to as high as $385 before ending the trading session at $311, up 68%.
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