Cerebras Targets $3.5 Billion in Blockbuster AI Chip IPO at $26.6 Billion Valuation
AI chip startup Cerebras filed updated IPO paperwork on May 4, planning to raise up to $3.5 billion by selling 28 million shares at $115-$125 each. The company, which makes wafer-scale chips to compete with Nvidia, has a major partnership with OpenAI worth over $20 billion.
IPO Details
Cerebras aims to raise as much as $3.5 billion by going public on the Nasdaq, looking to sell 28 million shares at $115 to $125 each. At that range, Cerebras could be worth up to $26.6 billion in the initial public offering, based on shares outstanding.
Company Performance
The company's fourth-quarter revenue grew about 76% year over year to $510 million, and it showed $87.9 million in net income for the period. Andrew Feldman, Cerebras' co-founder and CEO, is not selling shares in the IPO and will own 10.3 million shares after the IPO that would be worth up to $1.28 billion at the high end of the range.
Strategic Partnerships
In January, Cerebras said it would provide up to 750 megawatts of AI computing power to OpenAI through 2028 in a transaction worth over $20 billion. The company is known for its wafer-scale engine chips, designed to speed up the training and inference of large AI models, placing it in direct competition with Nvidia and other AI hardware firms.
Market Significance
Should Cerebras pull off an initial public offering at or above the high end, this will be the largest tech IPO of 2026 so far.