Cerebras Methods, a maker of synthetic intelligence chips, priced its IPO at $185 a share, above the anticipated vary, as traders gear up for what’s anticipated to be a really busy yr for brand spanking new AI choices.
The IPO reeled in $5.55 billion for Cerebras, which offered 30 million shares, in keeping with a assertion on Wednesday. Underwriters have the choice to buy an extra 4.5 million shares.
The corporate is hitting the market throughout a silicon renaissance. Intel, Superior Micro Gadgets and reminiscence maker Micron are every up greater than 80% previously month, and have notched way more dramatic good points over the previous yr as traders unfold their chip bets from Nvidia to the broader universe of semiconductor corporations now benefiting from the AI growth.
Cerebras’ providing is without doubt one of the largest tech IPOs in years. Uber raised about $8 billion in 2019, and the largest since then for a U.S. tech firm was Snowflake’s providing in 2020, which introduced in over $3.8 billion. Increasing to incorporate autos, electric-vehicle maker Rivian raised roughly $12 billion in 2021.
On the IPO value, Cerebras is now value $56.4 billion on a completely diluted foundation. Andrew Feldman, Cerebras’ co-founder and CEO, holds a stake value about $1.9 billion.
Based in 2016 and headquartered in Silicon Valley, Cerebras has confronted a rocky highway attending to the Nasdaq, the place it’ll commerce underneath ticker image CBRS.
In September 2024, Cerebras filed to go public, however it withdrew its submission somewhat over a yr later after its prospectus was closely scrutinized due largely to the corporate’s heavy reliance on a single buyer within the United Arab Emirates, Microsoft-backed G42.
Cerebras had began shifting its focus away from promoting {hardware} methods and extra towards offering a cloud service based mostly on its chips. Which means it is going up towards cloud suppliers similar to Google and Microsoft, that are each listed as opponents, together with Oracle and CoreWeave.
In its refreshed prospectus, Cerebras mentioned that 24% of income final yr got here from G42, down from 85% in 2024. Nonetheless, final yr Mohamed bin Zayed College of Synthetic Intelligence within the UAE accounted for 62% of income.
Cerebras scored a giant win in January, when it signed a cope with OpenAI value over $20 billion for 750 megawatts in Cerebras computing capability. Cerebras claims its Wafer Scale Engine 3 chips supply velocity and value benefits over graphics processing items, similar to Nvidia’s.
On Might 4, Cerebras mentioned it was trying to promote 28 million shares at $115 to $125 per share. Every week later, Cerebras bumped up the providing to 30 million and raised the anticipated vary to $150 to $160.
Earlier on Wednesday, Bloomberg reported, citing unnamed sources, that weeks earlier than Cerebras’ IPO, Arm and SoftBank each tried to accumulate it. Cerebras declined to remark.
In 2017, OpenAI checked out merging with Cerebras, viewing the chip firm as probably useful within the pursuit of synthetic common intelligence, or AGI, in keeping with testimony in Elon Musk’s trial towards OpenAI.
“Unique entry to Cerebras {hardware} would give OpenAI an awesome {hardware} benefit over Google,” Greg Brockman, OpenAI’s co-founder and president, wrote in an e-mail.
Brockman held about 78,000 shares of Cerebras on the finish of 2025, in keeping with a submitting within the case, which might be value $14.4 million on the IPO value. OpenAI CEO Sam Altman held about 89,000 Cerebras shares as of Dec. 31, a submitting from the case confirmed. That stake would now be value about $16.5 million.
Different Cerebras traders embrace Constancy, with a stake valued at about $3.8 billion, and Benchmark, which owns roughly $3.3 billion value of shares. Basis Capital’s holdings are valued at $2.8 billion, and Eclipse owns a $2.5 billion stake.
The IPO’s lead underwriters are Morgan Stanley, Citigroup, Barclays and UBS.
— CNBC’s Kristina Partsinevelos contributed to this report.
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