AI chip startup Cerebras said on Friday (3rd) that it would withdraw its initial public offering (IPO) plan in the United States, effective immediately.
This announcement comes just over a year after Cerebras first submitted its IPO prospectus. The company noted that it has completed US$1.1 billion in financing led by Fidelity Management Research and Atreides Management, valuing the company at US$8.1 billion. However, CEO Andrew Feldman still said at the time that the company still hoped to go public instead of continuing to rely on venture capital funding.
Josef Schuster, CEO of IPO research firm IPOX, said that considering that Cerebras has just completed a considerable financing recently, it is not surprising that they have postponed the IPO.
According to documents submitted to the U.S. Securities and Exchange Commission (SEC), Cerebras stated that it currently has no intention of conducting a public offering, but did not specify the specific reasons. A company spokesperson told CNBC that Cerebras still hopes to complete the listing as soon as possible. CEO Feldman considered last year’s IPO prospectus to be outdated, taking into account the rapid development of the AI field in recent years, and emphasized that the U.S. government shutdown was not the reason for the company’s decision to withdraw.
Cerebras applied to be listed in the United States about a year ago. At that time, it was preparing to challenge NVIDIA and was committed to building a processor that can run generative AI models. According to the filing, Cerebras is highly dependent on a single customer, G42, in the United Arab Emirates, which has been delayed by a U.S. national security review.
In the prospectus, Cerebras stated that it had voluntarily notified the Committee on Foreign Investment in the United States (CFIUS) about the sale of shares to G42. By March of this year, the company announced that the commission had approved the deal.
Cerebras CEO Andrew Feldman believes that there are huge development opportunities in front of us, and when the opportunity comes, it is the right thing to ensure sufficient funds and not let the opportunity be missed.
Cerebras focuses on developing high-performance AI chips and systems to accelerate the training and operation of large-scale AI models. This time, new investors include Tiger Global, Valor Equity Partners, and 1789 Capital (the son of former U.S. President Trump is a partner of the fund).
AI chipmaker Cerebras withdraws IPO AI chip firm Cerebras files to withdraw highly anticipated US listing Further reading: From the market value evaporating to a 30% increase in 3 days! Amidst the tariff chaos, how does Lamex turn around through acquisitions? ‘Humanity only has one chance’, AI safety expert warns, out-of-control superintelligence race could lead to extinction