Cerebras Systems Inc., a California-based maker of AI-focused chips, has filed for an initial public offering (IPO), aiming to enter a market dominated by Nvidia Corp.
The IPO filing, made public on Monday, comes as interest in artificial intelligence (AI) continues to surge. However, details regarding the number of shares to be offered or their price have not yet been disclosed. Cerebras intends to list its shares on the Nasdaq Global Market under the ticker symbol “CBRS.”
Founded in 2016, Cerebras is known for developing specialized chips designed to handle the unique demands of AI applications. The company claims to have solved a longstanding challenge in chipmaking by creating wafer-scale chips that are significantly larger than standard graphics processing units (GPUs). According to the company’s IPO filing, its third-generation Wafer-Scale Engine is “57 times larger” than a leading GPU, allowing it to handle more data and operate more efficiently.
The company’s AI computing platform integrates processors, software, and services to help clients train AI models faster and with less energy consumption. Cerebras serves a range of clients, including corporations, research institutions, and government agencies.
In 2021, Cerebras was valued at $4 billion during a funding round, and the company raised $250 million from investors, including Alpha Wave Ventures and Abu Dhabi Growth Fund. Cerebras reported $136.4 million in revenue for the first half of 2024, a significant jump from $24.6 million in 2022. Despite this growth, the company still reported a loss of $66.6 million for the first half of 2024, down from a $177.7 million loss the previous year.
One potential concern for investors is the company’s reliance on a small group of customers. More than 80% of Cerebras’ revenue in 2024 came from a single client, G42, an AI company based in the United Arab Emirates. The company has also acknowledged weaknesses in its financial reporting protocols.
Cerebras joins other startups seeking to capitalize on the AI boom, but it faces stiff competition from tech giants like Nvidia, which dominates the AI chip market. Nonetheless, Cerebras aims to carve out its own niche by offering high-performance chips that consume less energy and process data more quickly.
The IPO will be led by Citigroup and Barclays, but further details on the offering, including valuation, are expected to be revealed in future filings.
With input from Market Watch, Bloomberg, and the New York Times.
