Within the long-running saga that’s Cerebras Methods’s IPO, the end line is lastly in sight. The AI chipmaker said on Monday that it’s making ready to promote 28 million shares at $115 to $125 a share. This is able to elevate $3.5 billion and provides it a $26.6 billion market cap on the excessive finish.
That will be a pleasant bump in simply a few months for the late traders who piled into its $1 billion Series H at a $23 billion valuation in February. It might even be a boon to OpenAI and some of its executives.
Ought to Cerebras pull off an preliminary public providing at or above the excessive finish, this would be the largest tech IPO of 2026 to this point. It might additionally show the urge for food for even greater blockbuster choices within the wings, like SpaceX and probably OpenAI and Anthropic.
Cerebras gives an AI-specific chip referred to as the Wafer-Scale Engine 3 that challenges GPU-based AI chips. Cerebras says its chip is quicker for inference whereas utilizing much less energy than such rivals. Inference is the compute wanted to course of person prompts.
A protracted checklist of top-name traders stands to realize from a wholesome IPO. Rick Gerson’s Alpha Wave; Benchmark (by way of accomplice Eric Vishria); Lior Susan’s Eclipse; Constancy; and Basis Capital (by way of accomplice Steve Vassallo) are its largest shareholders with greater than a 5% stake, in accordance to the company’s SEC filing.
The corporate says its checklist of traders additionally consists of 1789 Capital, Abu Dhabi Development Fund, Abu Dhabi’s G42, Alpha Wave International, Altimeter, AMD, Atreides Administration, Coatue, Moore Strategic Ventures, Tiger International, Valor Fairness Companions, and VY Capital.
Plus, Cerebras names on its website an extended checklist of angel traders, too. These embrace OpenAI founder and CEO Sam Altman, OpenAI founder and president Greg Brockman, former OpenAI chief scientist (now founding father of his personal AI startup) Ilya Sutskever, OpenAI board member and Quora CEO Adam D’Angelo, Solar Microsystems and Arista co-founder Andy Bechtolsheim, Intel CEO Lip-Bu Tan, and a number of other different tech luminaries.
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Whereas Sam Altman’s stake wasn’t massive sufficient to reveal within the SEC filings, he was quoted in its S-1. That’s as a result of Cerebras’ relationship with OpenAI is much more noteworthy than its angel traders.
This relationship was even introduced as evidence by Elon Musk in his lawsuit with OpenAI. OpenAI had at one level thought-about buying Cerebras, in accordance with authorized filings by Musk’s attorneys that declare he was unaware of all the OpenAI execs’ private investments within the firm.
That deal by no means occurred, however OpenAI did turn into considered one of Cerebras’ largest prospects. In truth, in December, OpenAI loaned Cerebras $1 billion, secured by warrants that enable OpenAI to purchase over 33 million shares, the S-1 discloses. So whereas OpenAI will not be a big shareholder now, it might turn into one.
Cerebras had hoped to go public in 2024 however was delayed attributable to a federal evaluation of an funding from Abu Dhabi-based cloud supplier G42, which was (and nonetheless is, the chip firm says) a significant buyer. That IPO try was in the end shelved.
A 12 months later, Cerebras sought to lift more money. In September, it raised $1.1 billion at an $8.1 billion post-money valuation led by Constancy and Atreides. A couple of months later, Cerebras signed its new multi-year settlement price extra than $10 billion with OpenAI that included the mortgage and warrants. In February, it raised the $1 billion Collection H, its final mega spherical.
Ought to traders eat up the IPO, then OpenAI and its executives stand to realize in additional methods than one.
That appears seemingly. Banks are already fielding $10 billion price of orders for the $3.5 billion price of shares on provide, Bloomberg reports. That sort of demand signifies that the corporate will seemingly worth its shares even greater than this introduced vary, elevating much more money for itself and extra worth for its traders.
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