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Cerebras raised $5.5 billion in its IPO on Thursday, pricing shares at $185 Wednesday evening, way higher than its range ($115 to $125, later raised to $150-$160), even as it increased the size of the offering to 30 million shares.<\/p>\n
And pre-market trading indicates that shares are going to open with a giant pop, as retail investors bid up the price to grab them. (We\u2019ll update this story after trading begins.)<\/p>\n
Even at the IPO price, the company enters its first day of trading at a fully-diluted valuation of $56.4 billion (meaning, accounting for all shares). Co-founder CEO Andrew Feldman\u2019s stake at $185\/share is worth nearly $1.9 billion, while co-founder CTO Sean Lie\u2019s stake weighs in at about $1 billion.<\/p>\n
A year ago, it looked like this day would never happen for Cerebras. The Nvidia competitor, which designed its giant chip from scratch, purpose-built for AI, had first filed to go public in 2024. But concerns about a large investment from Abu Dhabi-based Group 42 mired the IPO in an endless review from the Committee on Foreign Investment in the United States (CFIUS). Investors were also cool about its financials: Group 42 accounted for almost all of Cerebras\u2019s revenues. So those IPO plans were shelved.<\/p>\n
IPO ambitions reappeared in earnest in April when the company was able to report about double the revenues<\/a>: $510 million in 2025 (up 76% year-over-year), and from a handful of customers. It also reported a massive swing to a profit \u2014 to $237.8 million in net income \u2014 compared to losing nearly half a billion the year before. <\/p>\n Investors began salivating.<\/p>\n Cerebras has now come out as a major contender for supplying chips for inference \u2014 the ongoing compute processing required for models to answer prompts \u2014 and now counts OpenAI (in a complicated circular-deal relationship<\/a>), G42, Saudi\u2019s Mohamed bin Zayed University of Artificial Intelligence and Amazon Web Services as customers.<\/p>\n Developing, will update this post with first-day of trading numbers. <\/em><\/p>\n<\/div>\n When you purchase through links in our articles, we may earn a small commission<\/a>. This doesn\u2019t affect our editorial independence.<\/em><\/p>\n