Discussions regarding funding for big chip co. are still ongoing.
Wafer-scale chip designer Cerebras Systems is looking to raise up to $1 billion in private funding, a move that could see its planned IPO delayed.
According to a report from The Information, deliberations regarding the additional funding are still ongoing, but if it were to go ahead, it would likely result in the pushback of the company’s planned public offering, originally slated for later this year.
In August 2024, Cerebras confidentially filed for an IPO with the SEC, although the share price and expected market cap were not revealed. The company has yet to move forward with the public offering, however, as it faced scrutiny from security watchdogs regarding its customers – at the time of filing, 87 percent of the company’s revenue for the first six months of 2024 came from Abu Dhabi-based artificial intelligence and cloud computing company, G42.
The revenue figure percentage was the same for 2023, the report noted. In July of that year, the two companies announced a $900 million investment from G42 to build an AI platform in the US using Cerebras chips.
Despite this, in March, Cerebras obtained clearance from the Committee on Foreign Investment in the United States to sell 22 million of nonvoting shares to Group 42 in an IPO, a stake that would be worth $355 million, the report claimed.
In May, following approval from the committee, Cerebras CEO Andrew Feldman said the company was aiming to go public this year.
