Cerebras Systems has announced it has cleared a significant hurdle in its IPO process by resolving concerns with the US Committee on Foreign Investment regarding its funding sources. The issues primarily stemmed from the company's dependence on UAE-based G42, which constituted over 87% of its revenue in early 2024. Following scrutiny regarding G42's ties to China and its previous plans to acquire considerable shares in Cerebras, the startup amended its agreement with G42, converting its investment to non-voting shares, thus addressing CFIUS objections and paving the way for its IPO without additional review.
Cerebras Systems has resolved funding concerns with the US government, enhancing its prospects for an IPO following issues with its major investor, UAE-based G42.
The company's revenue reliance on G42 prompted CFIUS scrutiny, leading to amendments that limited G42's share classification to non-voting in Cerebras to clear up concerns.
Collection
[
|
...
]