"Cerebras raised $5.5 billion in its IPO on Thursday, pricing shares at $185 Wednesday evening, way higher than its range ($115 to $125, later raised to $150-$160), even as it increased the size of the offering to 30 million shares. And pre-market trading indicates that shares are going to open with a giant pop, as retail investors bid up the price to grab them."
"Even at the IPO price, the company enters its first day of trading at a fully-diluted valuation of $56.4 billion (meaning, accounting for all shares). Co-founder CEO Andrew Feldman's stake at $185/share is worth nearly $1.9 billion, while co-founder CTO Sean Lie's stake weighs in at about $1 billion."
"A year ago, it looked like this day would never happen for Cerebras. The Nvidia competitor, which designed its giant chip from scratch, purpose-built for AI, had first filed to go public in 2024. But concerns about a large investment from Abu Dhabi-based Group 42 mired the IPO in an endless review from the Committee on Foreign Investment in the United States (CFIUS). Investors were also cool about its financials: Group 42 accounted for almost all of Cerebras's revenues. So those IPO plans were shelved."
"Cerebras has now come out as a major contender for supplying chips for inference - the ongoing compute processing required for models to answer prompts - and now counts OpenAI (in a complicated circular-deal relationship), G42, Saudi's Mohamed bin Zayed University of Artificial Intelligence and Amazon Web Services as customers."
Cerebras raised $5.5 billion in its IPO by pricing shares at $185, above an initial $115 to $125 range that was later raised to $150 to $160. The offering size increased to 30 million shares. Pre-market trading showed strong retail demand, suggesting a large opening price increase. At the IPO price, the company entered trading with a fully diluted valuation of $56.4 billion. Co-founder CEO Andrew Feldman’s stake was valued at nearly $1.9 billion, and co-founder CTO Sean Lie’s stake at about $1 billion. The IPO process had been delayed by CFIUS concerns tied to Group 42 and weak financials. Later results showed revenue growth to $510 million in 2025 and a swing to net income of $237.8 million. The company now targets inference chips and lists customers including OpenAI, G42, Mohamed bin Zayed University of Artificial Intelligence, and Amazon Web Services.
Read at TechCrunch
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