AI chip newcomer Cerebras (CBRS.US) plans to price its IPO at $115-125 per share, aiming to raise $3.5 billion.

Artificial Intelligence (AI) chip manufacturer and data center operator Cerebras Systems is planning to raise up to $3.5 billion through an initial public offering (IPO) to compete with competitors in this hot field. According to filings submitted to the U.S. Securities and Exchange Commission (SEC) by Cerebras, the company will issue 28 million shares of stock at a price of $115 to $125 per share. The IPO is expected to be priced on May 13th. Cerebras plans to list on the Nasdaq Global Select Market under the ticker symbol "CBRS". Based on the number of shares issued as per the filings, Cerebras' valuation will reach $26.6 billion at the upper end of the price range. However, including stock options, restricted stock units, and warrants, the diluted valuation of the company is estimated to be around $33 billion. The filings show that Cerebras had a net profit of $87.9 million and revenue of $510 million in 2025, compared to a net loss of $484.8 million and revenue of $290.3 million in the previous year. According to sources, investment banks underwriting the IPO project have received potential subscriptions of over $10 billion in the current semiconductor market, with the Philadelphia Semiconductor Index rising by 50% this year. Cerebras is among the increasing number of companies challenging NVIDIA Corporation, the undisputed market leader in the chip manufacturing sector. Cerebras manufactures large chips that help power custom computing for Beijing Vastdata Technology. According to CEO Andrew Feldman, its hardware runs artificial intelligence models faster than NVIDIA Corporation. The IPO comes at a time when IPO activity in the U.S. is booming. If SpaceX successfully raises its target of $75 billion, it could be the largest IPO in history. Data shows that IPOs on U.S. exchanges have raised $17.6 billion so far this year, excluding blank check companies and other financial instruments, compared to nearly $10 billion in the same period last year. Cerebras has ties to several top companies in the AI field. Earlier this year, Amazon.com, Inc. announced plans to use Cerebras' chips along with its own Trainium processor to run AI software, marking the first major hyperscale computing company to commit to using the company's products. In January, Cerebras signed a multi-year, $20 billion agreement with OpenAI, giving them access to 750 megawatts of computing power through its hardware. In February, OpenAI released the first AI model running on Cerebras. OpenAI also loaned Cerebras $1 billion in operating funds. The filings show that OpenAI holds warrants for 33 million shares of Cerebras, with some of the warrants subject to conditions such as the delivery date of computing power and the chip manufacturer's valuation exceeding $40 billion.