Cerebras cancels IPO after $1.1B raise

AI chipmaker Cerebras withdrew from its highly anticipated IPO after holding off on pursuing the U.S. listing following a large fundraising round a few days ago. IPOX boss Joseph Schuster said the decision was more of a strategic, company-specific move, adding that it was no surprise after raising $ 1.1 billion.

The AI chipmaker respectfully requested to withdraw its Company Registration Statement on Form S-1 filed with the U.S. SEC in September last year. Cerebras asked the Commission to grant the withdrawal order immediately, pursuant to Rules 418, 457 (p), and 477 of the Securities Act of 1933, as amended. 

The Nvidia competitor raised $1.1 billion on September 30, doubling its valuation to $8.1 billion, as reported by Cryptopolitan. Cerebras Systems CEO Andrew Feldman claimed it was the largest raise in the category and the highest valuation backed by “the best investors.”

Feldman insists the company will still go public

The Cerebras top executive said the company was still set on going public, rather than continuing with venture capital raises. He added that the IPO withdrawal did not indicate the company’s long-term preference. 

However, Feldman believes the initial prospectus from last September is outdated, considering the significant advancements the company has made in AI. One of Cerebras’ spokespersons also pointed out that the recent government shutdown did not influence the company’s decision to withdraw its IPO.

“I think we have tremendous opportunities in front of us, and I think it’s good practice, when you have enormous opportunities, not to let them fall by the wayside for lack of capital.” 

~ Andrew Feldman, CEO at Cerebras

The AI chipmaker has reportedly shifted focus from selling systems since its original filing requesting to go public on the Nasdaq. The company leans more toward cloud service provision and accepting incoming queries to models using its chips. 

Cerebras’ 2025 IPO probability drops by 1%

According to Kalshi data, the market for “Who will IPO in 2025” implied a 17% chance of a Cerebras 2025 IPO, a drop from the previous 18% probability. Kalshi reported over 60K in volume over the past 24 hours for this market. The market currently has a volume of over 283,000, with over 77,000 open positions, and overall liquidity stands at over 3.2 million contracts.

The company’s IPO prospects began to encounter obstacles shortly after it filed for a Nasdaq listing in the previous year. Cerebras initially faced criticism from the public, who were concerned that it would be overly reliant on a single Middle Eastern firm, G42. 

The AI chipmaker encountered a setback when it sought clearance from the Committee on Foreign Investment in the U.S. Department of the Treasury. However, private market investors have continued to hold bullish sentiments about the company despite the prolonged IPO delay. Feldman said the backing from private market investors was strong enough to double the company’s valuation from $4 billion in 2021 to over $8 billion in 2025.

The CEO also pointed out the benefits of having investors “who everybody would be proud of” as the cornerstone to any company’s IPO. He asserted that the “new money” will allow for an expansion in U.S. AI chip manufacturing. 

The company reportedly plans to hire more workers to focus on production as demand increases. Feldman said the company has increased its manufacturing capacity eight times over the past 18 months and is seeking another four times increase in the next six to eight months. 

According to Cryptopolitan, Cerebras’ recent funding will expand its Inference Service and continue innovation in AI supercomputers and AI chip design. The company has vowed to expand its manufacturing footprint and data center capacity in the U.S. ahead of its IPO. 

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