AI Chipmaker Cerebras Systems Eyes Its Public Debut In October
AInvestFriday, Aug 2, 2024 3:44 am ET
1min read
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According to sources familiar with the matter, Cerebras Systems, a rival of Nvidia and an artificial intelligence chip manufacturer, plans to go public through an initial public offering (IPO) as early as October this year.

The sources said that Cerebras has included Barclays in its IPO underwriting bank lineup. Discussions are ongoing, and IPO details may change, with the possibility of more banks joining the IPO investment banking team list.

In fact, previously, some reports already stated that Cerebras had secretly applied for an IPO in the United States and selected Citigroup as the lead underwriter for its IPO.

Cerebras Systems is an AI chip manufacturer located in Silicon Valley, United States, and was established in 2016.

In March of this year, Cerebras released the CS-3 artificial intelligence supercomputer with its latest WSE-3 chip, as well as the artificial intelligence supercomputer Condor Galaxy 3.

Currently, Nvidia dominates the AI chip market, and Cerebras aims to capture market share from Nvidia. The company claims that its chips are not only more powerful than Nvidia's graphics processing units but also offer better cost-effectiveness.

Cerebras' existing investors include the Abu Dhabi Growth Fund and Coatue Management. The company raised $250 million in its Series F funding round in 2021, with a valuation exceeding $4 billion.

As Cerebras prepares for its IPO, the U.S. IPO market continues to steadily recover. According to data compiled by the media, the U.S. IPO market has raised nearly $30 billion so far this year. This is about twice that of the same period in 2023, although the IPO market's activity level is still not as high as before the pandemic.

This IPO will also be a major test of investors' interest in artificial intelligence-related stocks. Concerns about excessive spending on artificial intelligence have prompted some investors to withdraw from the technology sector in the past month, turning to value stocks instead.

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