Nvidia Rival Cerebras Systems Eyes $3.5 Billion in IPO as AI Chip Demand Grows

TLDR

• Cerebras plans to sell 28 million shares at $115–$125 each on the Nasdaq
• The IPO could value the company at up to $26.6 billion
• Cerebras makes AI chips that compete with Nvidia’s GPUs
• Q4 revenue hit $510 million, up 76% year over year, with $87.9 million net income
• A $20 billion deal with OpenAI was announced in January 2025

AI chipmaker Cerebras Systems has filed an updated prospectus to raise up to $3.5 billion in an initial public offering on the Nasdaq stock exchange.

The company plans to sell 28 million shares priced between $115 and $125 each. At the top of that range, Cerebras would be valued at up to $26.6 billion.

That is up from a $23 billion valuation the company received in February, when it closed a venture funding round that included Advanced Micro Devices as an investor.

Cerebras makes AI chips designed as an alternative to the graphics processing units made by Nvidia, which dominate the AI hardware market.

The company will trade under the ticker symbol “CBRS” on the Nasdaq Global Select Market. Morgan Stanley, Citigroup, Barclays, and UBS Investment Bank are the lead underwriters for the deal.

Cerebras also has the option to sell an additional 4.2 million shares to underwriters within 30 days of the IPO. At the high end of the price range, that would bring in another $525 million.

From Hardware to Cloud

Cerebras first tried to go public in 2024 but pulled its filing. The company was shifting its business model away from selling chips directly and toward running a cloud service powered by its own hardware.

It filed for an IPO a second time in April 2026. The roadshow is now underway.

In January 2025, Cerebras announced it would supply up to 750 megawatts of AI computing power to OpenAI through 2028. That deal was valued at over $20 billion.

Strong Recent Financials

Cerebras reported fourth-quarter revenue of $510 million, a 76% increase compared to the same period the year before.

The company posted net income of $87.9 million for that quarter, showing it can generate profit.

Co-founder and CEO Andrew Feldman is not selling any shares in the IPO. After the offering, he will hold 10.3 million shares worth up to $1.28 billion at the top of the price range.

The IPO comes as tech listings have been slow since interest rates rose in 2022. Rival CoreWeave, which rents Nvidia GPUs as a cloud service, raised $1.5 billion in its own IPO last year.

Mizuho and TD Cowen are acting as bookrunners, with several other firms serving as co-managers on the deal.

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