Cerebras Systems plans a major Nasdaq debut, betting on surging demand for AI computing infrastructure and cloud-based chip services.
Artificial intelligence chipmaker Cerebras Systems is moving ahead with plans for a major Nasdaq listing, targeting up to $3.5 billion in proceeds as investor appetite for AI infrastructure companies continues to strengthen.
The company intends to sell 28 million shares priced between $115 and $125 each, according to its latest regulatory filing. At the top end of the range, Cerebras could reach a valuation of about $26.6 billion. Earlier this year, a funding round valued the company at roughly $23 billion, with participation from investors including Advanced Micro Devices.
Technology IPO activity has been relatively slow since interest rate hikes began in 2022, which dampened enthusiasm for high-growth companies lacking consistent profitability. However, the rapid adoption of generative AI tools—led by innovations from OpenAI—has revived investor interest in firms supplying critical AI computing infrastructure.
Cerebras develops specialized AI processors positioned as alternatives to graphics processing units widely supplied by Nvidia. The company competes with AI cloud providers such as CoreWeave, which rents GPU-based computing power to enterprise customers.
After shelving an IPO attempt in 2024, Cerebras shifted its business strategy from primarily selling hardware to offering cloud-based AI compute services powered by its own chips. The company returned to the public markets with a renewed filing earlier this year.
A key growth driver is its long-term agreement to deliver up to 750 megawatts of AI computing capacity to OpenAI through 2028, a deal valued at more than $20 billion. Financial performance has also improved, with fourth-quarter revenue rising 76% year over year to $510 million and net income reaching $87.9 million.
Co-founder and CEO Andrew Feldman will retain his holdings and is not selling shares in the offering. Underwriters may also purchase an additional 4.2 million shares, potentially increasing total proceeds if demand remains strong.
