CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test

Summary

CrowdStrike Holdings NASDAQ: CRWD has entered into a strategic partnership with Cerebras Systems NASDAQ: CBRS. CrowdStrike will pair Cerebras’s industry-leading artificial intelligence (AI) inference speed with its proprietary Falcon AI Detection and Response (AIDR) platform for enterprises building and deploying AI at scale. CrowdStrike Today$183.80 +0.38 (+0.21%) As of 11:25 AM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$85.68▼$217.50Price Target$183.85It’s already been a headline-making summer for CrowdStrike. In June, the company announced a four-for-one stock split. CRWD shares began trading at their split-adjusted price on July 2. The company has also announced an expansion of its strategic partnership with Schwarz Digits. The two companies are launching a multi-year roadmap to bring the Falcon platform to European enterprises on Schwarz Digits’ sovereign cloud.Get CrowdStrike alerts:Sign Up Both partnerships highlight the significance of the Frontier AI age and the key role cybersecurity will play in it. However, CRWD stock has dipped since the Cerebras announcement, suggesting the company has yet to convince investors that its growth justifies its valuation. The Cerebras partnership highlights a significant concern for the C-suite, providing investors with another reason besides price to include CRWD in a growth portfolio. AI Inference Speed Could Become CrowdStrike's Biggest EdgeThe AI revolution is driven by the speed of AI inference. Higher productivity and efficiency are the positive side effects of faster AI processing, but in cybersecurity, inference speed can also determine whether a threat is stopped before it spreads. That's the gap this partnership is designed to close. Under the agreement, CrowdStrike will run its Falcon AIDR models on Cerebras's wafer-scale CS-3 chips instead of relying solely on traditional GPU-based inference. In exchange, Cerebras is standardizing on the Falcon platform to secure its...