- BBAI
- CBRS
<a href="https://bitcomme.com/europes-startups-have-a-customer-not-capital-problem-say-investors/” title=”Europe's startups have a customer, not capital, problem, say investors”>Investors looking for exposure to the expanding artificial intelligence market often weigh hardware against software. Choosing between BigBear.ai (NYSE:BBAI) and Cerebras Systems (NASDAQ:CBRS) requires balancing defense-sector systems against high-speed semiconductor growth.
BigBear.ai focuses on decision intelligence for government agencies, while Cerebras Systems builds massive wafer-scale processors to power generative AI. Comparing them allows you to decide whether a niche software provider or a hardware challenger fits better in your portfolio as AI adoption reaches a mature phase in 2026.
The case for BigBear.ai
In its latest annual report, filed in early 2026, BigBear.ai details how it provides software that helps federal agencies and defense intelligence groups make better decisions. The company focuses on global supply chains and national security, using a specialized workforce that often holds high-level security clearances. Because the U.S. government is a major customer accounting for a large portion of revenue, customer concentration like this adds a layer of risk to the business.
In its 2025 fiscal year (FY), revenue reached $127.7 million, which was a decrease of 19.3% from the prior year. The company reported a net loss of $293.9 million for the same period. This decline highlights the challenges of navigating fluctuations in government budgets, even as the company targets defense AI demand among its tech stocks peers.
As of its December 2025 balance sheet, the debt-to-equity ratio was zero, indicating the company has no debt compared to its equity. The current ratio, which measures the ability to pay short-term obligations with liquid assets, was 1.8x. Free cash flow was negative at $46.3 million, representing the cash remaining after paying for operations and equipment.
The case for Cerebras Systems
In its latest annual report, filed in early 2026, Cerebras Systems explains how it builds unique AI infrastructure designed to handle the massive computing demands of developers. Its primary product is a wafer-scale system that integrates many processors on a single silicon chip to increase processing speed. The company serves various industries, including medical research and energy, providing both systems and cloud-based services.
In FY 2025, revenue reached $510.0 million, marking a significant increase of 75.7% over the previous year. Unlike many high-growth peers, the company achieved a net income of $237.8 million during this period. The net margin, which is the percentage of revenue remaining after all expenses are paid, was 46.6%.
