Sunnyvale, California-based AI chipmaker Cerebras Systems is seeking up to US$4 billion in an IPO that could value the company at approximately US$40 billion, according to Bloomberg. Formal marketing could begin as soon as May 4, with banks receiving more than US$10 billion in indications of interest, though size, valuation, and timing may still change.
IPO Valuation and Funding History
The US$4 billion IPO target represents a significant increase from approximately US$2 billion in March. This follows a February funding round that raised about US$1 billion at a US$23 billion valuation, including new capital.
Customer Concentration Risk
A recent SEC filing revealed significant customer concentration in the United Arab Emirates. Abu Dhabi-based AI firm G42 provided 24% of 2025 revenue, down from 85% a year earlier. Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), an Abu Dhabi AI research university, accounted for 62% of 2025 revenue.
Cerebras reported net income of US$237.8 million in 2025; however, this figure came from a US$363 million non-cash accounting adjustment. Without this adjustment, the company’s operating loss was US$145.9 million.
OpenAI Agreement and Performance Obligations
Remaining performance obligations reached US$24.6 billion as of December 31, 2025, with more than US$20 billion stemming from an OpenAI agreement. Under this broader agreement, OpenAI provided Cerebras with a US$1 billion loan to build data center infrastructure and provide services.
OpenAI holds warrants for as many as 33.4 million shares, which vest in full only if OpenAI purchases 2 gigawatts of computing power from Cerebras. This structure combines financing and equity-linked incentives, a model other AI labs could replicate as they seek computing capacity beyond Nvidia.
National Security Review Resolution
Cerebras stated in March 2026 that issues tied to a US national security review had been resolved, clearing a potential regulatory hurdle for the IPO process.
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