-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 NI/MpkTYpUJ8fNN39MBX0pn2PMCeObogQ3t4YNQ4pM+pzoR3l5efRhHu7GbL2K+a
 iP1pbSy4e6Cr5iGWN589ng==

<SEC-DOCUMENT>0001179110-03-006422.txt : 20030826
<SEC-HEADER>0001179110-03-006422.hdr.sgml : 20030826
<ACCEPTANCE-DATETIME>20030826183952
ACCESSION NUMBER:		0001179110-03-006422
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030826
FILED AS OF DATE:		20030826

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CRAY INC
		CENTRAL INDEX KEY:			0000949158
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPUTERS [3571]
		IRS NUMBER:				930962605
		STATE OF INCORPORATION:			WA
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		411 FIRST AVE SOUTH
		STREET 2:		SUITE 600
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98104-2860
		BUSINESS PHONE:		2067012000

	MAIL ADDRESS:	
		STREET 1:		411 FIRST AVE SOUTH
		STREET 2:		SUITE 600
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98104-2860

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TERA COMPUTER CO \WA\
		DATE OF NAME CHANGE:	19950809

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			KENNEDY KENNETH W JR
		CENTRAL INDEX KEY:			0001110624

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26820
		FILM NUMBER:		03867363

	BUSINESS ADDRESS:	
		STREET 1:		411 FIRST AVENAUE SOUTH SUITE 600
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98104
		BUSINESS PHONE:		2067012091

	MAIL ADDRESS:	
		STREET 1:		411 FIRST AVENUE SOUTH SUITE 600
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98104

	FORMER NAME:	
		FORMER CONFORMED NAME:	KENNEDY KENNETH W
		DATE OF NAME CHANGE:	20000329
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>
<periodOfReport>2003-08-26</periodOfReport>
<notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000949158</issuerCik>
        <issuerName>CRAY INC</issuerName>
        <issuerTradingSymbol>CRAY</issuerTradingSymbol>
</issuer>
<reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001110624</rptOwnerCik>
            <rptOwnerName>KENNEDY KENNETH W JR</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>411 FIRST AVENUE SOUTH</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 600</rptOwnerStreet2>
            <rptOwnerCity>SEATTLE</rptOwnerCity>
            <rptOwnerState>WA</rptOwnerState>
            <rptOwnerZipCode>98104-2860</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>1</isDirector>
<isOfficer>0</isOfficer>
<isTenPercentOwner>0</isTenPercentOwner>
<isOther>0</isOther>
<officerTitle></officerTitle>
<otherText></otherText>
</reportingOwnerRelationship>
</reportingOwner>
<nonDerivativeTable><nonDerivativeTransaction><securityTitle><value>COMMON STOCK</value>
</securityTitle>
<transactionDate><value>2003-08-26</value>
</transactionDate>
<transactionCoding><transactionFormType>4</transactionFormType>
<transactionCode>S</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
</transactionCoding>
<transactionAmounts><transactionShares><value>900</value>
</transactionShares>
<transactionPricePerShare><value>11.56</value>
</transactionPricePerShare>
<transactionAcquiredDisposedCode><value>D</value>
</transactionAcquiredDisposedCode>
</transactionAmounts>
<postTransactionAmounts><sharesOwnedFollowingTransaction><value>1292</value>
</sharesOwnedFollowingTransaction>
</postTransactionAmounts>
<ownershipNature><directOrIndirectOwnership><value>D</value>
</directOrIndirectOwnership>
</ownershipNature>
</nonDerivativeTransaction>
</nonDerivativeTable>
<derivativeTable></derivativeTable>
<footnotes></footnotes>
<ownerSignature><signatureName>KENNETH W KENNEDY, JR BY KENNETH W JOHNSON, ATTORNEY-IN-FACT</signatureName>
<signatureDate>2003-08-26</signatureDate>
</ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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