Cerebras IPO Raises $5.5B at $185 Share Price

Cerebras completed its initial public offering on Thursday. The company raised $5.5 billion. It priced shares at $185 each during the evening of Wednesday. This price beat the initial range of $115 to $125 per share. Later, that range moved to $150 to $160. Cerebras also boosted the offering size to 30 million shares.

Pre-market trading shows shares set for a large increase at the open. Retail investors have driven up bids to secure shares. The story will include updates once trading starts.

Valuation and Founder Stakes

At the IPO price of $185 per share, Cerebras starts trading with a fully diluted valuation of $56.4 billion. This figure accounts for all shares. Co-founder and CEO Andrew Feldman holds a stake worth almost $1.9 billion at that price. Co-founder and CTO Sean Lie has a stake valued at around $1 billion.

Cerebras makes large-scale chips designed specifically for AI workloads. The company, founded in 2016, builds the Wafer-Scale Engine, the largest chip ever produced. This hardware aims to handle massive AI computations more efficiently than traditional GPUs. It positions Cerebras as a direct rival to Nvidia in the AI chip market.

Challenges Delay Earlier IPO Plans

One year earlier, an IPO seemed out of reach for Cerebras. The firm first filed to go public in 2024. A major investment from Abu Dhabi-based G42 caused issues. The Committee on Foreign Investment in the United States, known as CFIUS, launched a prolonged review. Investors also questioned the financials. G42 made up nearly all of Cerebras's revenue at that time. Those factors led to pausing the IPO plans.

CFIUS reviews national security risks from foreign investments in U.S. companies. G42, a UAE AI firm, has ties to the region that raised flags. Cerebras had to navigate this process carefully before reviving its public market goals.

Strong Financial Results Fuel Revival

In April, Cerebras shared improved results that reignited interest. Revenue reached $510 million in 2025. That marked a 76% increase from the prior year. The money came from a small group of customers, not just one.

The company also turned profitable. Net income hit $237.8 million. This compared to a loss of close to $500 million the year before. Such numbers drew attention from investors.

Cerebras focuses on chips for AI inference. Inference involves the continuous processing needed for AI models to respond to user inputs. The company's hardware handles these tasks at scale.

Growing Customer Base

Cerebras now serves several key clients. OpenAI uses its chips in a complex arrangement that involves mutual dealings. G42 remains a customer. Saudi Arabia's Mohamed bin Zayed University of Artificial Intelligence is another. Amazon Web Services also buys from Cerebras.

These partnerships show Cerebras expanding beyond reliance on a single buyer. The firm's technology supports major AI deployments worldwide. As demand for AI inference grows, Cerebras gains ground in this area.

The IPO marks a key milestone for the company after years of development and regulatory hurdles. Trading details will follow as the market opens.

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