Cerebras and OpenAI: A Record IPO in the Works

Cerebras Systems: A Highly Anticipated IPO

Cerebras Systems, the chip manufacturer specializing in artificial intelligence, is about to reach a crucial milestone with its initial public offering (IPO). The company has announced its intention to sell 28 million shares, with a price set between $115 and $125 per share. This operation could allow Cerebras to raise up to $3.5 billion, bringing its potential market capitalization to $26.6 billion.

This IPO represents a significant opportunity for recent investors, particularly those who participated in the $1 billion Series H funding round in February, which valued the company at $23 billion. For OpenAI, a key partner of Cerebras, and some of its executives, this IPO could also offer notable benefits.

A Turning Point for the Tech Market in 2026

If Cerebras manages to reach or exceed the maximum expected price for its shares, it would mark the largest IPO in the tech sector for the year 2026. This potential success could also stimulate interest in other major IPOs, such as those of SpaceX, and possibly even OpenAI and Anthropic.

Cerebras stands out with its Wafer-Scale Engine 3 chip, specifically designed for AI. This chip positions itself as an alternative to traditional GPU-based AI chips, promising superior performance in inference while being more energy-efficient. Inference is a crucial process for handling user queries.

Prestigious Investors Awaiting Gains

A successful IPO could benefit an impressive list of investors. Among the major shareholders are Rick Gerson of Alpha Wave, Benchmark represented by Eric Vishria, Lior Susan of Eclipse, as well as Fidelity and Foundation Capital with Steve Vassallo.

Cerebras's filing with the SEC also reveals the presence of other notable investors such as 1789 Capital, Abu Dhabi Growth Fund, G42 of Abu Dhabi, Alpha Wave Global, Altimeter, AMD, Atreides Management, Coatue, Moore Strategic Ventures, Tiger Global, Valor Equity Partners, and VY Capital.

OpenAI: A Strategic Link with Cerebras

Cerebras also counts among its angel investors influential figures from the tech sector, including Sam Altman, CEO of OpenAI, Greg Brockman, president of OpenAI, and Ilya Sutskever, former chief scientist of OpenAI. Although Sam Altman's stake is not significant enough to be mentioned in the SEC filings, his presence is noted in Cerebras's S-1.

The relationship between Cerebras and OpenAI is particularly significant. Elon Musk even used this connection in his lawsuit against OpenAI, highlighting that OpenAI had considered acquiring Cerebras. Although this acquisition did not take place, OpenAI has become one of Cerebras's main clients. In December, OpenAI provided a $1 billion loan to Cerebras, accompanied by warrants allowing the purchase of over 33 million shares. Through these warrants, OpenAI could potentially become a major shareholder of Cerebras in the future.

A Rocky Path to the IPO

Initially, Cerebras planned to go public in 2024, but a federal review concerning an investment from G42, a cloud provider based in Abu Dhabi, delayed the process. G42 remains a major client of Cerebras, and this situation led to the temporary suspension of the IPO.

A year later, Cerebras sought to raise additional funds. In September, the company successfully secured $1.1 billion at a post-money valuation of $8.1 billion, thanks to investors like Fidelity and Atreides. Shortly thereafter, Cerebras signed a multi-year agreement worth over $10 billion with OpenAI, including the loan and warrants.

Promising Demand for the IPO

Investor interest in Cerebras's IPO appears to be high. According to Bloomberg, banks have already received orders totaling $10 billion for the $3.5 billion worth of shares being offered. This strong demand could allow Cerebras to set a share price above the announced range, thereby increasing the funds raised and the value for its investors.