Key Takeaways
- Cerebras Systems, an artificial intelligence (AI) chipmaker looking to grow its share of a competitive market, filed for an initial public offering (IPO) on Monday.
- The company makes larger chips specifically designed for AI technology and says its products have more on-chip memory and bandwidth than competitors.
- Cerebras, which could give investors a new way to gain exposure to the AI industry, didn’t disclose how many shares it plans to offer or an IPO price.
Cerebras Systems, an artificial intelligence (AI) chipmaker looking to compete with the biggest tech firms in the industry like Nvidia (NVDA), filed for an initial public offering (IPO) Monday, with the goal of listing on the Nasdaq under the “CBRS” stock ticker.
The company, founded in 2016, has spent the last several years designing chips specifically for AI technology. In its prospectus filed Monday, Cerebras said it has worked to answer the question of how it would design chips if it were starting the design process from scratch.
Cerebras Looking To Reduce Losses, Compete With Tech Giants
The company says that its design process has led it to create a chip substantially larger than those created by competitors, to avoid the complex process of connecting them and to provide greater on-chip memory and bandwidth.
In its prospectus, Cerebras reported a $66.6 million net loss for the first six months of 2024 on $136.4 million in total revenue, compared with a wider $77.8 million net loss and $8.7 million in revenue in the first half of 2023, as it said associated costs rose substantially year-over-year with increased production.
It listed its competition as chipmakers including Nvidia, Advanced Micro Devices (AMD), and Intel (INTC), along with Big Tech giants Microsoft (MSFT) and Alphabet (GOOGL), which have begun designing and producing their own AI chips.
Cerebras didn’t disclose how many shares it intends to offer, or what its IPO price will be, but clearly the potential IPO was announced at a time when companies are looking to capitalize on the market’s enthusiasm for the AI industry.