AI Chipmaker Cerebras Delays IPO After Securing $1.1 Billion Funding

AI chipmaker Cerebras withdraws IPO

Andrew Feldman, co-founder of Cerebras System Inc., speaks at the Raise summit in Paris, France, on Tuesday, July 8, 2025. Artificial intelligence chipmaker Cerebras on Friday filed paperwork with the U.S. Securities and Exchange Commission withdrawing plans for an initial public offering. The agency is operating at a low volume after the U.S. government shutdown that went into effect this week. Last year Cerebras filed for an IPO as it went up against Nvidia to make the most capable processors for running generative AI models. Earlier this week, exactly one year after the prospectus became available, Cerebras announced that it had raised $1.2 billion at a $8.1 billion valuation. At the time, Andrew Feldman, Cerebras' co-founder and CEO, said in an interview that the company still wanted to go public, rather than continue to raise venture capital and stay private. "I don't think this is an indication of a preference for one or the other," he said. "I think we have tremendous opportunities in front of us, and I think it's good practice, when you have enormous opportunities, not to let them fall by the wayside for lack of capital." Cerebras still does want to go public as soon as possible, a spokesperson told CNBC on Friday. Since filing for the IPO last year, Cerebras has shifted focus away from selling systems and more toward providing a cloud service for accepting incoming queries to models that use its chips underneath. Feldman thought the original prospectus from last year was out of date, especially considering developments in AI, the spokesperson said.

Wafer-scale chip startup Cerebras withdraws IPO filing after $1.1B round - SiliconANGLE

Wafer-scale chip startup Cerebras withdraws IPO filing after $1.1B round Cerebras Systems Inc. has shelved its plan to go public on the Nasdaq. The company, which develops artificial intelligence chips for data centers, filed to list its shares last September. Cerebras today asked the U.S. Securities and Exchange to withdraw the filing. It didn't provide a reason for the move. "The Company is seeking the withdrawal of the Registration Statement because the Company does not intend to conduct the proposed offering that is described therein at this time," Cerebras stated in its request to scrap the filing. The move comes days after the chipmaker raised $1.1 billion in funding from a consortium led by Fidelity Management. It's unclear if the two developments are connected. Shortly after the raise, Cerebras Chief Executive Officer Andrew Feldman stated that the company was still seeking to list its shares. A spokesperson told CNBC today that Cerebras hopes to launch its initial public offering as soon as possible. The tech industry has experienced only a handful of IPO filing withdrawals over the past decade. In 2019, WeWork Inc. had to scrap its listing after investors raised concerns about the viability of its business. Two years earlier, application observability provider AppDynamics Inc. canceled its IPO listing to accept a $3.3 billion acquisition offer from Cisco Systems Inc. Given that Cerebras has stated it still plans to go public, the withdrawal of its IPO listing likely wasn't motivated by an acquisition offer. Sunnyvale, California-based Cerebras sells an AI chip called the WSE-3 that is nearly the size of an entire wafer. It features 4 trillion transistors made using Taiwan Semiconductor Manufacturing Co.'s 5-nanometer process. Those transistors are organized into 900,000 cores and 44 gigabytes of memory. Usually, chips keep the AI software they run in external memory. As a result, they have to regularly move model data to and from their external memory, which slows down processing. The WSE-3's large 44-gigabyte memory pool enables customers to run AI models entirely on-chip and thereby avoid the latency associated with external RAM. Cerebras ships the chip as part of an appliance called the CS-3. The system combines a single WSE-3 with cooling equipment and other auxiliary hardware. In addition, Cerebras provides a cloud platform that enables developers to access its processors without taking on infrastructure maintenance tasks. The company stated in its IPO filing that it generated $136.4 million in revenue during the first half of 2024, more than ten times what it earned a year earlier. Cerebras' losses narrowed by about $10 million in the same time frame. After closing its $1.1 billion funding round earlier this week, Cerebras announced plans to add more data centers in the U.S. The company is building a half dozen stateside facilities that will host thousands of CS-3 appliances. Additionally, Cerebras will use the capital to speed up its internal chip and packaging design projects.

Nvidia Competitor Cerebras Shelves IPO Plans Days After Touching $8 Billion Valuation - NVIDIA (NASDAQ:NVDA)

Artificial intelligence chipmaker Cerebras Systems scrapped plans for an IPO on Friday, days after the company announced a fresh fundraising round that sent its valuation up to $8 billion. In a filing with the U.S. Securities and Exchange Commission (SEC), the Nvidia Corp. (NASDAQ:NVDA) competitor said it does not intend to conduct a proposed offering "at this time," but did not provide a reason. Fresh Funding Propped Valuation Up To $8 Billion Cerebras filed for an IPO just over a year ago, as it looked to take on AI chip giant Nvidia, in an effort to create chips for running generative AI models. See how NVDA shares have performed here Earlier this week, the Sunnyvale-based company said it raised $1.1 billion in new funding at a valuation of $8.1 billion. Investors included 1789 Capital, Alpha Wave, Altimeter Capital, Atreides Management, Benchmark, Fidelity, Tiger Global, and Valor Equity Partners. The withdrawal also comes three days into a U.S. government shutdown that has left agencies like the SEC operating with a small staff. Hopes To Take On Nvidia In its IPO prospectus last year, Cerebras called itself a designer of chips for training and running AI models. The company has prioritized operating a cloud-based service that AI models can use to handle incoming queries. High-valued AI companies are raising large sums of money in the private market, as investors bet on the explosive technology poised to transform industries and economies. Databricks, a seller of data analytics software, recently said it was closing a $1 billion funding round with a valuation above $100 billion. Last week, OpenAI said that Nvidia plans to invest up to $100 billion in the company as it builds out data centers. See also: Nvidia, Broadcom, Marvell Poised To Gain Big From $1.2 Trillion AI Spending Wave By 2030: Analyst Read Next: Jeff Bezos Calls AI Boom A Bubble -- But Says It's A Good One Image via Shutterstock NVDANVIDIA Corp$187.66-0.65%OverviewMarket News and Data brought to you by Benzinga APIs

AI chip firm Cerebras Systems files to withdraw its highly anticipated US listing

(Reuters) -AI chip startup Cerebras Systems, which competes with industry leader Nvidia in the booming AI chip market, on Friday filed to withdraw its plans for an initial public offering in the United States, effective immediately. Its withdrawal comes as U.S. IPO activity picks up in recent months, reversing an earlier slowdown caused by trade-policy uncertainty, with recent listings drawing strong investor demand. Cerebras on Tuesday said it raised $1.1 billion in a funding round led by Fidelity Management & Research and Atreides Management, valuing the company at $8.1 billion. "Given that Cerebras just very recently completed a sizeable fund raise, it is of no surprise that they are holding off to pursue the IPO at this time," said Josef Schuster, CEO of IPO research firm IPOX. Last year, Cerebras filed for an initial public offering on the Nasdaq. The company's highly anticipated listing was delayed by a U.S. national security review of a $335 million investment by G42, an Abu Dhabi-based cloud computing and AI company. "We believe this is more a company-specific strategic decision and does not tell us anything about the state of U.S. IPO sentiment, which we view as exceptionally strong," Schuster added. Sunnyvale, California-based Cerebras Systems makes high-performance AI chips and systems designed to speed up training and running large AI models, offering faster and cheaper alternatives to traditional GPUs. (Reporting by Prakhar Srivastava in Bengaluru; Editing by Alan Barona)