Andrew Feldman, co-founder and CEO of Cerebras Methods, speaks on the Collision convention in Toronto on June 20, 2024.
Ramsey Cardy | Sportsfile | Collision | Getty Pictures
Synthetic intelligence chip startup Cerebras Methods on Monday filed its prospectus for an preliminary public providing, with plans to commerce below the ticker image “CBRS” on the Nasdaq.
Cerebras competes with Nvidia, whose graphics processing models are the trade’s alternative for coaching and operating AI fashions. Cerebras says on its web site that its WSE-3 chip comes with extra cores and reminiscence than Nvidia’s fashionable H100. It is also a bodily bigger chip. Along with promoting chips, Cerebras gives cloud-based providers that rely by itself computing clusters.
Cerebras had a internet lack of $66.6 million within the first six months of 2024 on $136.4 million in gross sales, in response to the submitting. For the fist six months of 2023, the corporate had a internet lack of $77.8 million and $8.7 million in gross sales.
For the total 12 months of 2023, Cerebras reported a internet lack of $127.2 million on income of $78.7 million.
The corporate reported a internet lack of $50.9 million on $69.8 million in income within the second quarter, in contrast with a $26.2 million loss and $5.7 million in income in the identical interval a 12 months earlier.
AI chips are a rising and crowded market. Cloud suppliers Amazon, Google and Microsoft have developed their very own AI chips. The corporate mentioned that Group 42, a UAE-based AI firm that counts Microsoft as an investor, accounted for 83% of Cerebras’s income final 12 months.
Cerebras’ WSE-3 chip is one instance of latest silicon from upstarts designed to run and prepare synthetic intelligence.
Cerebras Methods
Along with Nvidia, Cerebras cites AMD, Intel, Microsoft and Google as rivals, “in addition to internally developed customized application-specific built-in circuits and quite a lot of non-public corporations.”
Taiwan Semiconductor Manufacturing Firm makes the Cerebras chips. Cerebrus warned buyers that any attainable provide chain disruptions might damage the corporate.
Cerebras was based in 2016 and relies in Sunnyvale, California. Andrew Feldman, the startup’s co-founder and CEO, offered server startup SeaMicro to AMD for $355 million in 2012.
The corporate said in 2021 that it was valued at over $4 billion in a $250 million funding spherical. Traders embody the Abu Dhabi Progress Fund, Altimeter Capital, Benchmark, Coatue, Basis Capital, OpenAI CEO Sam Altman and Solar Microsystems co-founder Andy Bechtolsheim.
In Could, G42 dedicated to buying $1.43 billion in orders from Cerebras earlier than March 2025, in response to the submitting. G42 at present owns below 5% of Cerebras’ Class A shares, and has an choice to buy extra relying on how a lot Cerebras product it buys.
The know-how IPO market has typically been sparse in 2024, as increased rates of interest pushed buyers towards worthwhile property. Social media app Reddit went public on the New York Inventory Trade in March, and knowledge administration software program maker Rubrik followed in April. Earlier this month, the Federal Reserve pushed forward with its first rate cut since 2020, prompting features within the tech-heavy Nasdaq Composite index.
Neither Morgan Stanley nor Goldman Sachs, the 2 main tech funding banks, are on the deal. Citigroup and Barclays are main the providing.
The most important investor in Cerebras is enterprise agency Basis Capital, adopted by Benchmark and Eclipse Ventures. Alpha Wave, Coatue and Altimeter every personal a minimum of 5% as nicely, in response to the submitting. The one particular person who owns 5% or extra is Feldman, the CEO.
WATCH: Cerebras CEO: Our inference offering is 20x faster than Nvidia’s and a fraction of the price