AI accelerator developer Cerebras Systems is preparing for an IPO

Founded in 2016 in California, Cerebras Systems develops unusually large chips to speed up artificial intelligence systems, and their production on square substrates is carried out by TSMC. The American startup remains unprofitable, but has already begun preparing for an IPO by publishing a prospectus for investors.

Image source: Cerebras

First of all, from the published data it becomes clear that in the first half of the year the company received net losses of $66.6 million with revenue of $136.4 million. The year before, revenue did not exceed $8.7 million with net losses of $77.8 million At the end of the entire last year, Cerebras’ revenue reached $78.7 million with losses of $127.2 million. In the second quarter of last year, the company earned $69.8 million and received losses of $50.9 million. The year before, revenue did not exceed $5.7 million, and a net loss of $26.2 million. Cerebras’ operating expenses increased this year due to the need to hire additional personnel due to business expansion.

UAE-based G42 accounted for 83% of Cerebras’ revenue last year. In addition to selling the accelerator chips themselves, the company is engaged in providing access to its own cloud capacities based on them. Having received $250 million in funding in 2021, Cerebras estimated its capitalization at $4 billion. What amount it is claiming based on the IPO results has not yet been specified. Arab G42 now owns about 5% of Cerebras shares, about the same amount in the hands of founder Andrew Feldman. G42 is committed to spending approximately $1.43 billion by March 2025 to purchase Cerebras accelerators. As purchase volumes increase, G42 will have the right to buy more shares of the American company.

About six institutional investors own at least 5% stakes in Cerebras. OpenAI founder and CEO Sam Altman is also a Cerebras shareholder, as is Sun Microsystems co-founder Andy Bechtolsheim.