Shares of Cerebras Systems opened roughly 90% higher than their IPO price in its U.S. market debut Thursday, as the chipmaker rides a wave of investor enthusiasm for artificial intelligence companies.
The Sunnyvale, California-based firm, a competitor to Nvidia, raised $5.55 billion in an upsized offering, giving it a valuation of $56.43 billion on a fully diluted basis. It's the largest IPO this year.
Founded in 2015, Cerebras developed a wafer-scale engine-a chip roughly the size of a dinner plate-designed to speed up AI processing. Unlike traditional GPU systems that use clusters of chips, it packs hundreds of thousands of compute cores onto a single processor.
This is Cerebras's second attempt to go public. Its partnership with UAE-based AI firm G42, which provided over 85% of its 2024 revenue, triggered a national security review by the Committee on Foreign Investment in the United States, but the deal was eventually cleared.
Since then, Cerebras has added Amazon and OpenAI as customers.
The IPO was heavily oversubscribed, drawing orders for more than 20 times the available shares. The stock trades on the Nasdaq under the ticker "CBRS."