Cerebras Systems Files For IPO And Authorizes Discounted Series F-1

Initially reported by The Information on June 20th, 2024, using data and filings provided by the Prime Unicorn Index, Cerebras Systems Inc. has discreetly filed for an initial public offering with securities regulators. This follows the June 6th filing of an updated certificate of incorporation which authorized a new Series F-1 round at $14.66 PPPS, a 47.16% decrease from the Series F price of $27.74. This steeply discounted share price could be more attractive to investors ahead of the IPO and suggests an internal valuation by Cerebras of about $2.44 billion.

Cerebras also announced a collaboration with Dell Technologies and AMD on June 12th. Dell servers and AMD CPUs will power storage for Cerebras AI supercomputers, with the collaboration also including machine learning expert services and large language model training. Boasting 880 times the memory capacity of graphics processing units (GPUs), 97 percent less code for large language models, and superior data processing, Cerebras aims to support scaling of AI acceleration technology and compete with industry leader Nvidia. 

Founded in 2015, Cerebras is a company focused on accelerating AI with a state-of-the-art supercomputer. They have developed the CS-3 system, which is powered by the world’s largest and fastest AI processor, also developed by Cerebras, the Wafer Scale Engine-3. This system packs the performance of a server room into a single unit, delivering computing advantages at lower power than GPUs and improving cost efficiency. 

Cerebras has raised approximately $758.7 million in venture funding, with investments from Eclipse Ventures, Foundation Capital, Benchmark Capital, Coatue Management, Vy Capital, Eclipse Ventures, Abu Dhabi Growth Fund, and others. Last valued by the Prime Unicorn Index at $3.33 billion following secondary transactions, Cerebras has improved their market position with this collaboration and is likely raising funds to prepare their balance sheet for the upcoming public offering.