Cerebras Systems, an artificial intelligence chipmaker, made headlines recently as it announced its filing for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC). The IPO, led by investment banks Citigroup and Barclays, among others, is a significant step for the company.
Known for its claim to have the world’s largest and fastest AI chip, Cerebras competes with Nvidia in the AI computing space. Nvidia is a key player in the industry, recognized for its graphic processing units (GPUs) used for training and running AI models.
With a valuation of $4 billion in its 2021 funding round, Cerebras plans to trade its Class A stock under the ticker symbol “CBRS” on the Nasdaq Global Market. Despite its impressive valuation, the company reported a net loss of $66.6 million in the first half of 2024 on $136.4 million in sales. This trend of losses is not new, as previous financial data shows similar patterns in previous years.
A significant portion of Cerebras’ revenue comes from Abu Dhabi’s G42, an AI tech giant backed by the Emirati sovereign wealth fund Mubadala. This partnership has been instrumental in driving Cerebras’ growth and revenue.
Founded in 2015 and headquartered in Sunnyvale, California, Cerebras has a global presence with offices in the U.S., Canada, and India. The company’s expansion into India, with an office in Bangalore led by industry veteran Lakshmi Ramachandran, reflects its commitment to tapping into the talent and potential of the Indian market.
CEO Andrew Feldman emphasized the importance of AI as a technology trajectory, stating that it is the most significant advancement of our generation. Despite the excitement around the Indian market, Feldman highlighted the need for more supercomputers to match the talent pool in the country.
As Cerebras prepares for its IPO, there is anticipation about how this move will impact its Indian operations. However, the company has stated that it is currently in a “quiet period” and will not be participating in any interviews at this time.
The involvement of journalists like Mythili Devarakonda in covering these developments is crucial for providing insights and updates to readers. With a background in journalism and a focus on serving the Indian American and South Asian communities, journalists like Mythili play a vital role in keeping the public informed about significant business events like Cerebras’ IPO filing.
