AI chipmaker Cerebras withdraws plans for US stock market debut

Cerebras Systems has withdrawn its planned initial public offering (IPO) in the US, effective immediately, according to a filing made on Friday.

The company, which develops AI chips and competes with established market players such as Nvidia, cited no specific reason for the withdrawal.

It has requested the withdrawal of its registration statement on Form S-1 from the US Securities and Exchange Commission (SEC) after deciding not to pursue the planned public offering detailed in the filing.

The S-1 form, originally submitted on 30 September 2024, had not been declared effective and no securities were sold under its terms.

The company has asked that all fees paid for the registration be credited for future use as allowed under SEC rules.

Cerebras also requested that any supplemental materials previously supplied to the SEC be either returned or destroyed, with instructions to direct returns to its legal firm, Latham & Watkins.

In addition, Cerebras has asked the SEC to issue a formal order confirming withdrawal of the registration statement at the earliest opportunity. Copies of the order have been requested for both company headquarters and legal counsel.

The decision comes soon after Cerebras had recently completed a $1.1bn funding round led by Fidelity Management & Research and Atreides Management, which set its valuation at $8.1bn.

Additional investors in the Series G round included Tiger Global, Valor Equity Partners, and 1789 Capital.

Cerebras’ IPO plans were previously delayed after a national security review of a $335m investment by G42, an AI and cloud firm based in Abu Dhabi, reported Reuters.

The withdrawal coincides with increased US IPO activity after a period of reduced volume linked to trade policy concerns.

Cerebras is based in Sunnyvale, California and designs hardware systems intended to accelerate large-scale machine learning model training and inference.

The company plans to allocate proceeds from the Series G round to advance its AI processor technology, expand US manufacturing capacity, and scale its data centre infrastructure.

“AI chipmaker Cerebras withdraws plans for US stock market debut” was originally created and published by Verdict, a GlobalData owned brand.

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