Andrew Feldman, co-founder and CEO of Cerebras Programs, speaks on the Collision convention in Toronto on June 20, 2024.
Ramsey Cardy | Sportsfile | Collision | Getty Pictures
Synthetic intelligence chip startup Cerebras Programs on Monday filed its prospectus for an preliminary public providing, with plans to commerce below the ticker image “CBRS” on the Nasdaq.
Cerebras competes with Nvidia, whose graphics processing models are the business’s alternative for coaching and operating AI fashions. Cerebras says on its web site that its WSE-3 chip comes with extra cores and reminiscence than Nvidia’s widespread H100. It is also a bodily bigger chip. Along with promoting chips, Cerebras gives cloud-based providers that rely by itself computing clusters.
Cerebras had a web lack of $66.6 million within the first six months of 2024 on $136.4 million in gross sales, based on the submitting. For the fist six months of 2023, the corporate had a web lack of $77.8 million and $8.7 million in gross sales.
For the total 12 months of 2023, Cerebras reported a web lack of $127.2 million on income of $78.7 million.
The corporate reported a web lack of $50.9 million on $69.8 million in income within the second quarter, in contrast with a $26.2 million loss and $5.7 million in income in the identical interval a 12 months earlier.
Working bills have elevated this 12 months partly due to increased personnel prices to help income progress, the corporate mentioned.
AI chips are a rising and crowded market. Cloud suppliers Amazon, Google and Microsoft have developed their very own AI chips. The corporate mentioned that Group 42, a UAE-based AI agency that counts Microsoft as an investor, accounted for 83% of Cerebras’s income final 12 months.
Cerebras’ WSE-3 chip is one instance of recent silicon from upstarts designed to run and practice synthetic intelligence.
Cerebras Programs
Along with Nvidia, Cerebras cites AMD, Intel, Microsoft and Google as opponents, “as well as internally developed custom application-specific integrated circuits and a variety of private companies.”
Taiwan Semiconductor Manufacturing Firm makes the Cerebras chips. Cerebrus warned buyers that any attainable provide chain disruptions might damage the corporate.
Cerebras was based in 2016 and is predicated in Sunnyvale, California. Andrew Feldman, the startup’s co-founder and CEO, bought server startup SeaMicro to AMD for $355 million in 2012.
The corporate mentioned in 2021 that it was valued at over $4 billion in a $250 million funding spherical.In Might, G42 dedicated to buying $1.43 billion in orders from Cerebras earlier than March 2025, based on the submitting. G42 presently owns below 5% of Cerebras’ Class A shares, and the agency has an choice to buy extra relying on how a lot Cerebras product it buys.
The expertise IPO market has typically been sparse in 2024, as increased rates of interest pushed buyers towards worthwhile belongings. Social media app Reddit went public on the New York Inventory Alternate in March, and knowledge administration software program maker Rubrik adopted in April. Earlier this month, the Federal Reserve pushed forward with its first price minimize since 2020, prompting positive aspects within the tech-heavy Nasdaq Composite index.
Neither Morgan Stanley nor Goldman Sachs, the 2 main tech funding banks, are on the deal. Citigroup and Barclays are main the providing.
The most important investor in Cerebras is enterprise agency Basis Capital, adopted by Benchmark and Eclipse Ventures. Alpha Wave, Coatue and Altimeter every personal at the very least 5% as nicely, based on the submitting. Different buyers embrace OpenAI CEO Sam Altman and Solar Microsystems co-founder Andy Bechtolsheim. The one particular person who owns 5% or extra is Feldman.
WATCH: Cerebras CEO: Our inference providing is 20x quicker than Nvidia’s and a fraction of the value
