AI chipmaker Cerebras is said to target up to $4 billion in IPO

Synopsis

AI chipmaker Cerebras Systems is preparing for a massive initial public offering. The company aims to raise up to four billion dollars, valuing itself at forty billion dollars. This move comes as demand for AI infrastructure surges. Cerebras plans to begin marketing its shares soon. The offering is being led by major financial institutions.

Cerebras Systems is seeking to raise as much as $4 billion in its initial public offering, according to people familiar with the matter, as demand for the artificial intelligence chipmaker and data center operator’s shares heats up.

The Sunnyvale, California-based company is targeting a valuation of about $40 billion, the people said, asking not to be identified as the information isn’t public. Cerebras plans to begin formal marketing for the IPO as soon as Monday, the people said.

The banks on the deal have already received indications of interest in excess of $10 billion worth of potential orders, the people said. It comes as shares of semiconductor stocks have soared, with the benchmark Philadelphia Stock Exchange Semiconductor Index rising 50% this year.

Details of the listing including size, valuation and timing could change, the people said. A Cerebras representative declined to comment.

The new target represents an increase from Cerebras’ earlier plans. The company was seeking to raise about $2 billion in the IPO, people familiar with the matter said in March. Cerebras, which had lodged confidential paperwork months after withdrawing its previous registration, filed publicly last month.

Investors and megacap technology companies are rapidly accelerating their multibillion-dollar investments into building AI infrastructure.

Cerebras is part of a growing cohort seeking to challenge market leader Nvidia Corp. with giant chips that can handle massive amounts of data in one go. Chief Executive Officer Andrew Feldman has said that Cerebras’ hardware runs AI models much faster than Nvidia. It also operates its own data centers.

In February, Cerebras raised about $1 billion in a funding round that valued the firm at $23 billion including money raised. The funding was led by Tiger Global Management with participation from investors including Benchmark, Fidelity Management & Research Co., and Advanced Micro Devices. The fresh valuation was a significant increase from a September round that valued the company at $8.1 billion.

Cerebras had been reliant on business from G42, an Abu Dhabi AI firm that provided 24% of its revenue in 2025, down from 85% in the previous year, its most recent filing with the US Securities and Exchange Commission shows. The relationship led to a review by the Committee on Foreign Investment in the US. Cerebras said last March that all open issues with CFIUS had been resolved. G42 is not listed as a 5% shareholder in the current filing.

The offering is being led by Morgan Stanley, Citigroup, Barclays Plc and UBS Group AG. The company plans for its shares to trade on the Nasdaq Global Select Market under the symbol CBRS.