Cerebras Files for IPO: What to Know About the Nvidia Challenger
Cerebras Files for IPO: What to Know About the Nvidia Challenger
The chipmaker is striving for AI supremacy and could have the hottest initial public offering of 2024
Cerebras Systems has filed a confidential IPO with the Securities and Exchange Commission.
The company competes against industry heavyweight Nvidia, heating up the AI race.
The IPO will test investors’ appetite for artificial intelligence investment amid shifting market dynamics.
Cerebras Systems, a startup chipmaker that focuses on artificial intelligence, filed confidentially today for an initial public offering (IPO) with the Securities and Exchange Commission (SEC).
The IPO will mark a milestone for the semiconductor industry, introducing what some consider most serious challenger to Nvidia (NVDA). The confidential filing allows Cerebras to keep its financials private for now. The company is backed by several large investors, including the Abu Dhabi Growth Fund.
Cerebras says its flagship product is the CS-3, powered by the WSE-3, a wafer-scale engine with 900,000 AI cores in a single processor. It describes the engine as the fastest AI processor in the world today, with 880 times more capacity and 7,000 times greater bandwidth than an Nvidia H100.
Cerebras aims to enable AI systems to scale more easily and efficiently by placing a huge number of cores on one wafer, allowing for higher-parameter AI models that use less energy than GPU-based infrastructure. The company uses Taiwan Semiconductor’s (TSM) services for its WSE-3.
Dell Technologies (DELL) partnered with Cerebras back in June, opening an enterprise sales channel for Cerebras.
The race for AI supremacy is sending billions into the chipmaking industry, with companies like Microsoft (MSFT) and Alphabet (GOOG) investing heavily in building up AI-focused data centers. However, questions about when investors would see returns on that spending have injected some volatility into the chipmaking business. The VanEck Semiconductor ETF (SMH) is down over 17% since its July swing high.
There is no set date for the Cerebras IPO, but if market conditions deteriorate further, it could push a potential listing back for some time. Otherwise, we could see Cerebras list on U.S. markets later this year, and it would likely be one of the hottest IPOs of 2024.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
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