American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

AI chipmaker Cerebras Systems files for IPO to challenge Nvidia, records threefold revenue jump

by admin October 1, 2024
October 1, 2024
AI chipmaker Cerebras Systems files for IPO to challenge Nvidia, records threefold revenue jump

AI chip startup Cerebras Systems has filed for an initial public offering (IPO), signaling its ambition to compete with industry giant Nvidia.

Cerebras Systems reported more than a threefold increase in its annual revenue for 2023, the AI chipmaker revealed in its filing for a US initial public offering on Monday.

According to a prospectus filed on Monday, Cerebras plans to list on the Nasdaq under the ticker symbol “CBRS.”

Cerebras is positioning itself as a strong contender in the competitive AI chip sector, which has been largely dominated by Nvidia’s graphics processing units (GPUs).

The company claims its third-generation WSE-3 chip surpasses Nvidia’s popular H100 in terms of cores, memory, and physical size. In addition to selling chips, Cerebras offers cloud-based services powered by its own computing clusters.

Financial performance and challenges

The company’s financial results reveal both potential and challenges. Cerebras reported a net loss of $66.6 million in the first six months of 2024 on $136.4 million in sales.

This is an improvement compared to the same period in 2023, where the company experienced a net loss of $77.8 million and sales of just $8.7 million.

For the full year of 2023, Cerebras posted a net loss of $127.2 million on $78.7 million in revenue.

In the second quarter of 2024, the company faced a $50.9 million loss, with revenue reaching $69.8 million—up from a $26.2 million loss and $5.7 million in revenue for the same period a year earlier.

Cerebras attributes its rising operating expenses to higher personnel costs needed to support its growing revenue.

However, it remains unprofitable, and its ability to scale while managing costs will be a key focus for investors.

Competitive landscape and strategic partners

The AI chip market is fiercely competitive, with cloud providers like Amazon, Google, and Microsoft developing their own AI chips.

Cerebras also identifies AMD, Intel, Microsoft, and Google as competitors, alongside a range of private companies creating custom AI chips.

Cerebras has a key relationship with Group 42 (G42), a UAE-based AI firm that accounted for 83% of its revenue in 2023.

In May 2024, G42 committed to purchasing $1.43 billion in Cerebras products by March 2025, solidifying its role as a major partner.

Supply chain risks and key investors

Cerebras manufactures its chips through Taiwan Semiconductor Manufacturing Company (TSMC).

The company has warned potential investors that any supply chain disruptions could have significant impacts on production.

Founded in 2016 and based in Sunnyvale, California, Cerebras is led by Andrew Feldman, its co-founder and CEO, who previously sold server startup SeaMicro to AMD for $355 million in 2012.

Cerebras was valued at over $4 billion in a 2021 funding round.

Major investors include Foundation Capital, Benchmark, Eclipse Ventures, Alpha Wave, and Coatue. High-profile backers like OpenAI CEO Sam Altman and Sun Microsystems co-founder Andy Bechtolsheim have also invested.

Feldman remains the only individual owning more than 5% of the company.

The post AI chipmaker Cerebras Systems files for IPO to challenge Nvidia, records threefold revenue jump appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Rolls-Royce share price surged: is Tufan Erginbilgiç just lucky?
next post
SMCI joins Nvidia, Broadcom in list of semiconductor giants choosing stock splits, here’s why

Related Posts

Asian markets mixed on Tuesday: Hang Seng slips...

May 13, 2025

Tesla stock price forecast: 4 reasons TSLA is...

February 27, 2025

Anora’s Oscar triumph: how the low-budget indie film...

March 3, 2025

BP shifts gears, scales back renewables to regain...

October 7, 2024

How Hermès stays resilient in economic uncertainty on...

April 20, 2025

Asian markets close higher in thin trade: Nikkei...

May 1, 2025

The Fed’s preferred inflation measure rose 0.2% in...

June 2, 2024

Apple prevents opponents from viewing key data in...

March 13, 2025

The Body Shop shuts down in the U.S....

March 14, 2024

Intel used to dominate the U.S. chip industry....

May 1, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,012)
    • Investing (2,455)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved