Chips As Big As Your Head: Cerebras Does Deal With OpenAI For $10 Billion+ In Computing Power
That's our usual description of Cerebras. Where Nvidia uses smaller chips with ultrafast connections, Cerebras users the whole silicon wafer and eliminates the need for many of the connections completely.
We've said, almost ad nauseam, that we don't place money in IPOs. Partly because the academic work says they don't have a very good return profile and partly because no matter who your prime broker is you end up getting allocated too little of the quadruple-subscribed names and too much of the not so popular ones. But they are an absolute treasure trove of information.
Here Pitchbook does the initial scan, April 17:
From the major UAE revenue portion to special agreements with OpenAI, here’s what you need to know about the Nvidia rival’s IPO filing.
After delays, AI chipmaker Cerebras has filed to go public.
The Nvidia rival’s S-1 shows revenue of $510 million in 2025, up 76% from the year before. The filing also discloses a $24.6 billion order backlog — most of it tied to a December deal with OpenAI to supply 750 megawatts of AI compute through 2028, with options for nearly 3 gigawatts more by 2030. OpenAI advanced Cerebras a $1 billion loan and received warrants for 33 million near-free shares.
But Cerebras’ profitability is driven in large part by a paper gain.
In 2024, the company had signed a deal with the Abu Dhabi tech company G42 to sell its preferred shares, which resulted in the company recording a $401 million loss in 2024....
....MUCH MORE
