Cerebras Systems raises IPO price range to $160 as AI chip demand draws 20x oversubscription

Cerebras bumps up IPO range as it looks to raise up to $4.8 billion

Cerebras CEO Andrew Feldman speaks to the media at the Colovore office in Santa Clara, Calif., on March 12, 2024. Artificial intelligence chipmaker Cerebras Systems has increased the estimated price range for its initial public offering. It's now looking to sell at $150 to $160 per share, according to a Monday filing, up from the range of $115 to $125 that it disclosed last week. At the high end of the new range, Cerebras would net up to $4.8 billion in proceeds through the IPO. The company could end up being worth up to $48.8 billion on a fully diluted basis. That's up from the $23 billion valuation the company announced in February as part of a funding round. Among companies that want to train and run generative artificial intelligence models like those that power OpenAI's ChatGPT, Nvidia's graphics processing units, or GPUs, have been the industry standard. Cerebras says its chips perform more quickly than GPUs and cost less money. The high speeds that Cerebras advertises helped the company to secure a $20 billion-plus commitment from OpenAI, which relies on Cerebras for a model that writes code. Rather than focus chiefly on selling hardware, Cerebras has been filling data centers with its own chips and providing cloud services to clients. That puts it up against cloud infrastructure providers. But in March, top cloud Amazon Web Services announced a deal to bring Cerebras chips into its data centers. Cerebras has received additional attention in the trial for Elon Musk's lawsuit against OpenAI CEO Sam Altman. Cerebras' planned chips represented "the compute we thought we were going to need," Greg Brockman, OpenAI's co-founder and president, said in a California courtroom last week. OpenAI discussed merging with Cerebras, and Musk was open to a deal, Brockman said. Nasdaq expects the Cerebras IPO to take place on May 14. -- CNBC's Ashley Capoot contributed to this report.

Report: AI chipmaker Cerebras to increase IPO price target amid surging investor demand - SiliconANGLE

Report: AI chipmaker Cerebras to increase IPO price target amid surging investor demand Artificial intelligence chipmaker Cerebras Systems Inc. is expected to increase the size and price of its initial public offering later today as investor demand for access to its shares continues to rise. Reuters reported Sunday that the chipmaker is now considering raising its IPO price range to between $150 to $160 per share, up from an initial target of between $115 and $125 per share. The company is also considering increasing the number of marketed shares from 28 million to 30 million, anonymous sources told the news agency. The new price range means that Cerebras can expect to raise around $4.8 billion from the sale, up from an earlier target of $3.5 billion under the original terms of the IPO, which were detailed last week. Cerebras has timed its IPO to take advantage of the surging demand for high-performance AI chips, and has reportedly received orders for more than 20-times the number of shares it made available for the sale, according to the sources. The company is set to officially price its IPO on May 13. The Sunnyvale, California-based company sells wafer-sized AI chips called the WSE-3 that are several times larger than Nvidia Corp.'s Blackwell B200 graphics processing units. One of its main selling points of its chips is their 44-gigabyte pool of SRAM. SRAM is a memory variety that features significantly more transistors per square millimeter than standard server DRAM. As a result, it's considerably faster and several orders of magnitude more expensive. Processors include a quartz crystal that moves millions of times per second in response to an electric current. Each movement corresponds to a clock cycle, the basic unit of time in chips. Cerebras says WSE-3's 900,000 cores can access the onboard SRAM pool with latency of one clock cycle, which is significantly faster than what a standard graphics card offers. The result is faster performance on inference, the process of providing responses to queries. Cerebras ships the WSE-3 as part of a 1.8-ton appliance called the CS-3. Customers can link together multiple CS-3 systems into clusters with the help of auxiliary devices it also sells. When it filed its IPO paperwork last week, Cerebras revealed that its revenue had jumped by 76% in 2025 to $290.3 million. It's already profitable, having recorded a net income of $87.9 million that year, having lost $485 million in the year prior. The company has benefited from increased demand for its processors as AI labs shift from training AI models to deploying them in production. That suits Cerebras, whose chips are better suited for inference workloads, running the computations that enable AI models to respond to user queries, than Nvidia's general-purpose GPUs. Next week's IPO is the chipmaker's second attempt to go public. It originally attempted to do so back in 2024, only to cancel the plan last year due to controversy over its partnership with the United Arab Emirates-based firm G42, which accounted for more than 80% of its revenue that year. The U.S. Committee on Foreign Investment in the United States subjected that partnership to a national security review, but ultimately cleared both firms of any wrongdoing. While that process was ongoing, Cerebras took care to continue building its business, adding OpenAI Group PBC and Amazon Web Services Inc., two of the world's biggest builders of AI infrastructure, as customers. Cerebras's IPO will be the biggest listing so far this year, according to Dealogic. Morgan Stanley, Citigroup, Barclays and UBS Group AG are all helping the company with its offering. Once the listing concludes, Cerebras's stock will be traded on the Nasdaq Global Select Market under the ticker symbol "CBRS."

Nvidia, AMD, Broadcom And Now Cerebras: AI Chip Trade Gets A New Name - Broadcom (NASDAQ:AVGO), NVIDIA (N

The AI chip trade is getting a new public-market name this week. Cerebras Systems is expected to price its IPO on Wednesday, with shares potentially beginning to trade on Nasdaq under the ticker CBRS as early as Thursday, subject to final pricing and the registration statement becoming effective. AMD stock is moving. See the chart and price action here. Nvidia remains the dominant name in AI accelerators, AMD is trying to gain share with its Instinct lineup and Broadcom has become a major custom-chip beneficiary as hyperscalers seek alternatives to an all-Nvidia strategy. New Kid on the AI Block Cerebras brings a different flavor to the trade. The company is built around wafer-scale AI chips and cloud services, positioning itself as a pure-play AI infrastructure name at a time when public investors have had few new semiconductor IPOs with direct AI exposure. Demand appears to be building quickly. Reuters reported Cerebras is considering raising its IPO price range to $150 to $160 per share, up from $115 to $125, and increasing the offering size to 30 million shares from 28 million shares. The report also said the IPO has drawn orders for more than 20 times the available shares ahead of its expected May 13 pricing. Cerebras has a marquee customer story: OpenAI signed a deal with Cerebras worth more than $10 billion, tied to 750 megawatts of low-latency AI compute capacity coming online in phases through 2028. That gives Cerebras validation from one of the biggest buyers of AI compute, but it also raises a familiar question for investors: how much growth is already priced in? The risk side remains important. Cerebras previously faced delays tied to a U.S. national security review involving Abu Dhabi-based G42's investment, Reuters reported last year. That makes the IPO more than a chip story; it is also a customer concentration, export-control and geopolitical-risk story. If the offering prices strongly, CBRS could quickly become the next ticker traders use to express the AI chip trade. Photo: Samuel Boivin / Shutterstock This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Cerebras to raise IPO price range to $150-$160 as demand surges, sources say

May 10 (Reuters) - Cerebras Systems is set to raise the size and price of its initial public offering as soon as Monday, as demand for the artificial intelligence chipmaker's shares continues to climb, two people familiar with the matter told Reuters on Sunday. The company is considering a new IPO price range of $150-$160 a share, up from $115-$125 a share, and raising the number of shares marketed to 30 million from 28 million, said the sources, who asked not to be identified because the information isn't public yet. At the top of the new range, Cerebras would raise roughly $4.8 billion, up from $3.5 billion under its original terms, though the figures remain subject to change before pricing, the people said. The increase follows a broader surge in AI adoption that has driven sharp demand for high-performance chips and turned semiconductors into a key bottleneck in the technology supply chain. Cerebras' IPO has drawn orders for more than 20 times the number of shares available, the people said, as the chipmaker looks to manage surging interest ahead of its May 13 pricing. Cerebras did not immediately respond to a request for comment. Bloomberg News previously reported the company planned to raise the price range of the IPO to $125-$135 per share. Sunnyvale, California-based Cerebras makes specialized chips for running advanced AI models in a market dominated by Nvidia.Cerebras is seeing surging demand for its processors as AI labs shift from training models to deploying them. Cerebras' chips are better suited for inference, the computations that allow AI models to respond to user queries, than the GPU chips the industry has long relied on for model training. The IPO next week would mark Cerebras' second attempt to go public - the company first filed for an IPO in 2024 but pulled that plan last year. Its partnership with G42, a UAE-based AI company that provided more than 80% of its revenue in the first half of 2024, had drawn a national security review by the Committee on Foreign Investment in the United States. The committee eventually cleared the deal. Since then, Cerebras has secured Amazon and OpenAI, two of the biggest builders of AI infrastructure in the world, as customers. The listing would be the biggest IPO globally so far this year, according to Dealogic. The offering is being led by Morgan Stanley, Citigroup, Barclays and UBS Group AG. Cerebras plans for its shares to trade on the Nasdaq Global Select Market under the symbol CBRS. (Reporting by Echo Wang in New York; Editing by Paul Simao)