Cerebras Systems, a Nvidia Competitor, Files IPO Prospectus
Cerebras Systems, a Nvidia Competitor, Files IPO Prospectus
The six-year-old company was founded by Andrew Feldman, who sold his server startup to Advanced Micro Devices
Cerebras Systems has filed a prospectus for initial Public Offering.
The chipmaker, a competitor to Nvidia, has seen significant revenue growth.
Cerebras will trade under the ticker symbol “CBRS” on the Nasdaq.
Cerebras files prospectus for IPO
Cerebras Systems filed a prospectus with the Securities Exchange Commission yesterday for an initial public offering (IPO). The filing comes just a month after doubts were raised amid a market sell-off that hit semiconductor stocks especially hard, including Nvidia (NVDA).
The company is nearly six years old and was founded by Andrew Feldman, who made millions after he sold his server startup to Advanced Micro Devices (AMD) in 2012. Cerebras is partially backed by the Abu Dhabi Growth Fund and makes wafer-sized chips that outcompete Nvidia’ chips.
The prospectus notes the Cerebras stock will trade under the ticker symbol “CBRS” on the Nasdaq. Citigroup and Barclays are the lead underwriters on the offering. Major investors include Foundation Capital, Benchmark, Eclipse Ventures, Alpha Wave, Coatue and Altimeter.
Cerebras will potentially be the hottest listing of the year after a multi-year dry streak for the IPO market. Earlier this year, Reddit (RDDT) and Rubrik (RBRK) listed on the New York Stock Exchange (NYSE), marking a turnaround for public listings.
In September, the sell-off in Nvidia put markets on edge and the IPO market along with it. NVDA fell nearly 14% in the first week of September. However, since then, Nvidia stock, along with the broader market has stabilized.
The prospectus not only mentions Nvidia as a competitor but AMD and Intel (INTC) as well. The pursuit of dominance in artificial intelligence has pushed a surge of capital into these names, with investors chasing an emerging industry that has near limitless potential.
Cerebras sees rapid growth in AI computing ahead of IPO
Cerebras expects the AI computing market to grow to $453 billion by 2027, which would be up from the $131 billion this year. That represents a compounded annual growth rate (CAGR) of 51%, according to the filing. The company is already capturing market share.
The prospectus highlights rapid revenue growth, rising to $78.7 million for the year ended 2023, up 220% from $24.6 million in 2022. For the six months ended June 30, 2024, revenue was $136.4 million. Despite heavy investment, the operating loss fell 28% year-over-year from 2022 to 2023. The reduction in 2024 for the first six months vs. 2023 saw a 14% reduction in net losses.
Cerebras could start trading in the coming weeks and may mark one of the hottest IPOs in years.
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