{"id":26461,"date":"2024-09-30T22:40:09","date_gmt":"2024-09-30T22:40:09","guid":{"rendered":"http:\/\/108039764"},"modified":"2024-09-30T22:40:09","modified_gmt":"2024-09-30T22:40:09","slug":"ai-chipmaker-cerebras-files-for-ipo-to-take-on-nvidia","status":"publish","type":"post","link":"https:\/\/wp.worldtechguide.net\/ai-chipmaker-cerebras-files-for-ipo-to-take-on-nvidia\/","title":{"rendered":"AI chipmaker Cerebras files for IPO to take on Nvidia"},"content":{"rendered":"<p><span class=\"HighlightShare-hidden\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108039780\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Andrew Feldman, co-founder and CEO of Cerebras Systems, speaks at the Collision conference in Toronto on June 20, 2024.<\/p>\n<p>Ramsey Cardy | Sportsfile | Collision | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Artificial intelligence chip startup Cerebras Systems on Monday filed its prospectus for an initial public offering, with plans to trade under the ticker symbol &#8220;CBRS&#8221; on the Nasdaq.<\/p>\n<p>Cerebras competes with <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><span class=\"waslinkname\">Nvidia<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>, whose graphics processing units are the industry&#8217;s choice for training and running AI models. Cerebras says on its website that its WSE-3 chip comes with more cores and memory than Nvidia&#8217;s popular H100. It&#8217;s also a physically larger chip. In addition to selling chips, Cerebras offers cloud-based services that rely on its own computing clusters.<\/p>\n<p>Cerebras had a net loss of $66.6 million in the first six months of 2024 on $136.4 million in sales, according to the filing. For the fist six months of 2023, the company had a net loss of $77.8 million and $8.7 million in sales.<\/p>\n<p>For the full year of 2023, Cerebras reported a net loss of $127.2 million on revenue of $78.7 million.<\/p>\n<p>The company reported a net loss of $50.9 million on $69.8 million in revenue in the second quarter, compared with a $26.2 million loss and $5.7 million in revenue in the same period a year earlier.<\/p>\n<p>Operating expenses have increased this year in part because of higher personnel costs to support revenue growth, the company said.<\/p>\n<p>AI chips are a growing and crowded market. Cloud providers <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\"><span class=\"waslinkname\">Amazon<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\"><span class=\"waslinkname\">Google<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-4\"><span class=\"waslinkname\">Microsoft<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> have developed their own AI chips. The company said that Group 42, <span class=\"waslinkname\">a UAE-based AI firm<\/span> that counts Microsoft as an investor, accounted for 83% of Cerebras&#8217;s revenue last year.<\/p>\n<\/div>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107422916\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Cerebras&#8217; WSE-3 chip is one example of new silicon from upstarts designed to run and train artificial intelligence.<\/p>\n<p>Cerebras Systems<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>In addition to Nvidia, Cerebras cites AMD, Intel, Microsoft and Google as competitors, &#8220;as well as internally developed custom application-specific integrated circuits and a variety of private companies.&#8221;<\/p>\n<p>Taiwan Semiconductor Manufacturing Company makes the Cerebras chips. Cerebrus warned investors that any possible supply chain disruptions may hurt the company.<\/p>\n<p>Cerebras was founded in 2016 and is based in Sunnyvale, California. Andrew Feldman, the startup&#8217;s co-founder and CEO, sold server startup SeaMicro to <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-6\"><span class=\"waslinkname\">AMD<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> for $355 million in 2012.<\/p>\n<p>The company <span class=\"waslinkname\">said<\/span> in 2021 that it was valued at over $4 billion in a $250 million funding round.In May, G42 committed to purchasing $1.43 billion in orders from Cerebras before March 2025, according to the filing.&nbsp;G42 currently owns under 5% of Cerebras&#8217; Class A shares, and the firm has an option to purchase more depending on how much Cerebras product it buys.<\/p>\n<p>The technology IPO market has generally been sparse in 2024, as higher interest rates pushed investors toward profitable assets. Social media app Reddit <span class=\"waslinkname\">went public<\/span> on the New York Stock Exchange in March, and data management software maker Rubrik <span class=\"waslinkname\">followed<\/span> in April. Earlier this month, the Federal Reserve pushed ahead with its <span class=\"waslinkname\">first rate cut<\/span> since 2020, prompting gains in the tech-heavy Nasdaq Composite index.<\/p>\n<p>Neither Morgan Stanley nor Goldman Sachs, the two leading tech investment banks, are on the deal. Citigroup and Barclays are leading the offering.<\/p>\n<p>The biggest investor in Cerebras is venture firm Foundation Capital, followed by Benchmark and Eclipse Ventures. Alpha Wave, Coatue and Altimeter each own at least 5% as well, according to the filing. Other investors include OpenAI CEO Sam Altman and Sun Microsystems co-founder Andy Bechtolsheim. The only individual who owns 5% or more is Feldman.<\/p>\n<p><strong>WATCH:<\/strong> <span class=\"waslinkname\">Cerebras CEO: Our inference offering is 20x faster than Nvidia&#8217;s and a fraction of the price<\/span><\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108027193\">\n<div role=\"button\" id=\"Placeholder-ArticleBody-Video-108027193\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000350179\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/wp.worldtechguide.net\/wp-content\/uploads\/2024\/09\/ai-chipmaker-cerebras-files-for-ipo-to-take-on-nvidia.jpg\" alt=\"Cerebras CEO: Our inference offering is 20x faster than Nvidia's and a fraction of the price\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Andrew Feldman, co-founder and CEO of Cerebras Systems, speaks at the Collision conference in Toronto on June 20, 2024. Ramsey Cardy | Sportsfile | Collision | Getty Images Artificial intelligence chip startup Cerebras Systems on Monday filed its prospectus for an initial public offering, with plans to trade under the ticker symbol &#8220;CBRS&#8221; on the &hellip;<\/p>\n","protected":false},"author":1,"featured_media":26462,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"hashtags":[],"class_list":["post-26461","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","has-thumb","has-featured"],"_links":{"self":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/26461"}],"collection":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/comments?post=26461"}],"version-history":[{"count":0,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/26461\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media\/26462"}],"wp:attachment":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media?parent=26461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/categories?post=26461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/tags?post=26461"},{"taxonomy":"hashtags","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/hashtags?post=26461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}