A second risk, and likely the biggest, is Cerebras' customer concentration. Right now, AI company G42 from the United Arab Emirates accounts for 87% of Cerebras' sales in the first six months of 2024. G42 and affiliated entities are also behind next year's $1.43 billion order, meaning that concentration will only grow.

To take market share from Nvidia, Cerebras would need to add application software that is more advanced and useful than Nvidia’s CUDA.

FILE PHOTO: Startup Cerebras System's new AI supercomputer Andromeda is seen at a data center in Santa Clara, California, U.S. October 2022. Rebecca Lewington/Cerebras Systems/Handout via REUTERS/File Photo (Reuters) - Artificial intelligence chipmaker Cerebras Systems on Monday filed for an initial public offering in the United States.