Amy Or and Bailey Lipschultz
(Bloomberg) — Cerebras Systems is planning to kick off its initial public offering this week with a view to raising as much as $1 billion in a New York listing, people with knowledge of the matter said.
The Silicon Valley firm startup, which makes semiconductors optimized for artificial intelligence uses, is planning to file to go public with the US Securities and Exchange Commission as soon as Friday ahead of launching an investor roadshow in the coming weeks, according to the people.
It is targeting to raise $750 million to $1 billion in a listing, the people said, asking not to be identified discussing confidential information. That could value the company at $7 billion to $8 billion, they said.
Deliberations are ongoing and details on the size and timetable for the listing could still change, depending on market conditions and investor demand, the people said. A representative for Cerebras declined to comment.
Citigroup Inc. has been picked to lead the Cerebras IPO, with Barclays Plc also working on the listing, Bloomberg News reported previously.
Cerebras’ products are used by corporations, research institutions, and governments to develop proprietary models and train open-source models. Its flagship CS-3 system is optimized to handle AI computing workloads and can be clustered together to power AI supercomputers.
Cerebras raised $250 million in a series F financing round in 2021, valuing it at more than $4 billion, according to a statement at the time. The round was led by Alpha Wave Ventures, Abu Dhabi Growth Fund and G42. Cerebras’ existing investors include Altimeter Capital, Benchmark Capital and Coatue Management.