US Chip Start-up Cerebras to Raise $5.5 Billion in IPO
US chip startup Cerebras Systems is set to begin trading on Wall Street on Thursday at an IPO price of $185 per share, raising approximately $5.5 billion in what is expected to be the largest initial public offering in the United States this year.
Based on all outstanding shares, including stock options and other financial instruments, the Sunnyvale, California-based company is now valued at more than $55 billion.
The company significantly increased its expected IPO pricing during the roadshow process, reflecting strong investor demand for AI infrastructure companies. Cerebras initially targeted a price range of $115 to $125 per share before revising it upward to between $150 and $160.
The final offering price of $185 per share underscores the growing enthusiasm surrounding companies building the hardware backbone for artificial intelligence applications.
Cerebras plans to issue 30 million shares on the Nasdaq exchange, with underwriters holding an option to purchase an additional 4.5 million shares. The offering is expected to rank among the 15 largest IPOs ever completed on Wall Street and the biggest since medical equipment company Medline went public in December.
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The company is best known for developing wafer-scale processors, massive AI chips designed to accelerate the training and deployment of advanced artificial intelligence models.
These processors are considered highly efficient for handling large-scale AI workloads and are increasingly being adopted by enterprises and cloud providers.
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The IPO also highlights the rapid expansion of the AI infrastructure market following the explosive growth of generative AI technologies since the launch of OpenAI’s ChatGPT. Earlier this year, OpenAI reportedly committed to purchasing more than $10 billion worth of Cerebras processors.
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As part of that agreement, OpenAI received warrants that could eventually convert into shares, potentially giving it ownership of more than 10 percent of Cerebras if certain conditions are met.