AI chipmaker startup Cerebras to launch IPO in October. All you need to know

(Bloomberg) -- Cerebras Systems, a startup making semiconductors optimized for artificial intelligence uses, is targeting a launch for its initial public offering as soon as October, according to people familiar with the matter.

The Silicon Valley firm has added Barclays Plc to the lineup of banks working on the deal, the people said. Cerebras picked Citigroup Inc. as the lead bank, Bloomberg News reported in April, and has filed confidentially with the US Securities and Exchange Commission for a listing.

Deliberations are ongoing, details of the offering may change and more banks could be added to the lineup, the people said. Representatives for Cerebras and Barclays declined to comment.

A first-time share sale by Cerebras would come as US IPOs continue along a steady path to recovery, with nearly $30 billion raised so far this year, data compiled by Bloomberg show. That’s more than double the volume for the same period in 2023, even though the level of activity is still below the pre-pandemic average.

The AI firm may seek a valuation in the IPO above the $4 billion figure achieved in its 2021 funding round, Bloomberg News reported in January.

CS-3, Cerebras’ flagship system, is optimized to handle AI computing workloads and can be clustered together to power AI supercomputers, according to the company’s website.

Cerebras raised $250 million in a series F financing round in 2021, valuing it at over $4 billion, according to a statement at the time. The round was led by Alpha Wave Ventures, Abu Dhabi Growth Fund and G42. Cerebras’ existing investors include Altimeter Capital, Benchmark Capital and Coatue Management, the statement showed.