Cerebras Systems, an AI chip start-up, Monday announced that it had filed its prospectus for its initial public offering and would list to trade on the Nasdaq under the ticker symbol CBRS. As a competitor to Nvidia-the firm whose graphics processing units, or GPUs, are traditionally the first choice for training and running AI models-Cerebras said that its WSE-3 chip has more cores and memory than Nvidia’s signature H100, and is even larger.
Cerebras has also reported net loss of $66.6 million in the first half of 2024, however, with sales figures of $136.4 million, increased from the same period last year, which reported net loss of $77.8 million and total sales of $8.7 million. The fiscal year of 2023 revenues stand at $78.7 million where the net loss lay, whereas the company experienced a net loss at $127.2 million at the same period. As of the fiscal Q2 2024, Cerebras has been reported to have a net loss of $50.9 million from its loss last year which was $26.2 million.
Operating cost provisions drove growth this year in revenues, and the competition AI chip is rising with the big cloud players developing their AI chips such as Amazon, Google, and Microsoft. Most notably last year, 83% of Cerebra’s revenue came from Group 42, a UAE-based AI firm in which Microsoft is an investor.
Among the other major competitors, identified include Intel, AMD, Microsoft, and Google are identified by Cerebras as these organizations are also developing application-specific integrated circuits. It also noted risks in potential disruption to its business through supply chain disruption.
Founded in 2016 in Sunnyvale, California, Cerebras was valued at more than $4 billion during a funding round of $250 million in 2021. G42 just agreed to spend $1.43 billion on orders from Cerebras before March of 2025 and today owns less than 5% of the company’s Class A shares.
Although there was a thinly traded IPO market for technology companies in 2024 and even with rising interest rates, that seem to sway investor decisions, Citigroup and Barclays are leading the IPO offer of Cerebras whereas Morgan Stanley and Goldman Sachs are not.
