Cerebras raised $5.5 billion in its IPO on Thursday, pricing shares at $185 Wednesday night, means greater than its vary ($115 to $125, later raised to $150-$160), even because it elevated the scale of the providing to 30 million shares.
And pre-market buying and selling signifies that shares are going to open with an enormous pop, as retail buyers bid up the worth to seize them. (We’ll replace this story after buying and selling begins.)
Even on the IPO worth, the corporate enters its first day of buying and selling at a fully-diluted valuation of $56.4 billion (which means, accounting for all shares). Co-founder CEO Andrew Feldman’s stake at $185/share is value practically $1.9 billion, whereas co-founder CTO Sean Lie’s stake weighs in at about $1 billion.
A 12 months in the past, it seemed like at the present time would by no means occur for Cerebras. The Nvidia competitor, which designed its large chip from scratch, purpose-built for AI, had first filed to go public in 2024. However issues about a big funding from Abu Dhabi-based Group 42 mired the IPO in an countless evaluate from the Committee on Overseas Funding in america (CFIUS). Traders had been additionally cool about its financials: Group 42 accounted for nearly all of Cerebras’s revenues. So these IPO plans had been shelved.
IPO ambitions reappeared in earnest in April when the corporate was able to report about double the revenues: $510 million in 2025 (up 76% year-over-year), and from a handful of consumers. It additionally reported a large swing to a revenue — to $237.8 million in web earnings — in comparison with dropping practically half a billion the 12 months earlier than.
Traders started salivating.
Cerebras has now come out as a significant contender for supplying chips for inference — the continuing compute processing required for fashions to reply prompts — and now counts OpenAI (in a complicated circular-deal relationship), G42, Saudi’s Mohamed bin Zayed College of Synthetic Intelligence and Amazon Internet Providers as clients.
Creating, will replace this publish with first-day of buying and selling numbers.
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