AI chipmaker Cerebras set to file for IPO as soon as today

Cerebras, a leading developer of chips designed for artificial intelligence applications, is preparing to file for an initial public offering, according to sources familiar with the situation. The filing is expected to occur as early as today. While the company has refrained from making official comments, it has gained significant traction in the AI sector over the years. Initially focused on selling its cutting-edge chips, Cerebras has shifted strategy to operate these chips within its own data centers, offering cloud services to clients. Notably, the company has secured a significant contract with OpenAI, committing to deliver up to 750 megawatts of computing power by 2028 in a deal valued at over $10 billion. This partnership has since evolved, with OpenAI reportedly expanding its agreement with Cerebras to a staggering worth of over $20 billion, which includes options for acquiring shares in the company. The potential for further collaboration is on the horizon. During Oracle's earnings call in March, CEO Clay Magouyrk mentioned that Oracle provides chips from Cerebras among other suppliers, although Cerebras was absent from their pricing list at that time. The company continues to supply OpenAI with cloud-based computing resources to support its coding tools. In a landscape dominated by Nvidia's graphics processing units (GPUs) for generative AI models, Cerebras is carving out its niche by highlighting the exceptional speed of its large-scale processors, particularly for user query responses. Previously, Cerebras announced its intention to go public in 2024 but halted its IPO paperwork last year to enhance disclosures regarding its financial performance and strategic vision. There is a growing appetite among retail investors for IPOs from notable tech firms after a slowdown in 2022. Other AI companies, such as Anthropic and OpenAI, are also contemplating public offerings this year. Just days before retracting its IPO filings, Cerebras secured a $1.1 billion funding round, raising its valuation to $8.1 billion. Founded in 2016 and headquartered in Sunnyvale, California, Cerebras has a rich history, with co-founder Andrew Feldman previously selling his startup SeaMicro to AMD for $355 million in 2012. It is rumored that Elon Musk once attempted to acquire Cerebras in 2018, and among its investors is OpenAI CEO Sam Altman.