Cerebras, a key rival to Nvidia, is targeting a valuation of up to $26.62 billion in its U.S. initial public offering. The Sunnyvale, California-based company plans to sell 28 million shares priced between $115 and $125 each, aiming to raise $3.5 billion. This marks its second attempt to go public after withdrawing a filing last October.
Cerebras is known for its wafer-scale engine chips, which accelerate the training and inference of large AI models, placing it in direct competition with Nvidia and other hardware firms. The surge in AI adoption has driven sharp demand for high-performance chips, turning semiconductors into a critical bottleneck in the technology supply chain.
Earlier this year, Cerebras raised $1 billion in a late-stage funding round led by Tiger Global, valuing it at $23 billion. Other backers include Benchmark, Fidelity Management, Altimeter, AMD, and Coatue. The company also struck a multi-year deal with OpenAI valued at over $20 billion, under which the ChatGPT parent will deploy 750 megawatts of Cerebras's high-speed AI compute.
Cerebras reported revenue of $510 million for the year ended December 31, up from $290.3 million a year earlier. It also posted a profit of $1.38 per share, a sharp turnaround from a loss of $9.90 per share.
Morgan Stanley, Citigroup, Barclays, and UBS are the lead underwriters for the offering.