OpenAI’s cozy partner Cerebras is on track for a blockbuster IPO
Cerebras Systems is preparing for a major IPO, aiming to raise $3.5 billion with a potential $26.6 billion market cap, marking one of the largest tech IPOs of 2026. The company's AI-specific Wafer-Scale Engine 3 chip competes with GPU-based solutions by offering faster inference and lower power consumption. OpenAI and several of its executives are closely tied to Cerebras through investments, customer agreements, and a $1 billion loan with equity warrants.
- ▪Cerebras plans to sell 28 million shares at $115 to $125 each, targeting a $26.6 billion valuation at the high end.
- ▪OpenAI loaned Cerebras $1 billion in December, secured by warrants allowing it to acquire over 33 million shares.
- ▪Major investors include Alpha Wave, Benchmark, Eclipse, Fidelity, and Foundation Capital, each holding more than 5% stake.
- ▪Cerebras previously delayed its 2024 IPO due to a federal review of investment from Abu Dhabi’s G42.
- ▪Banks have received $10 billion in orders for the $3.5 billion offering, indicating strong investor demand.
Opening excerpt (first ~120 words) tap to expand
In the long-running saga that is Cerebras Systems’ IPO, the finish line is finally in sight. The AI chipmaker said on Monday that it is preparing to sell 28 million shares at $115 to $125 a share. This would raise $3.5 billion and give it a $26.6 billion market cap at the high end. That would be a nice bump in just a couple of months for the late investors who piled into its $1 billion Series H at a $23 billion valuation in February. It would also be a boon to OpenAI and a few of its executives. Should Cerebras pull off an initial public offering at or above the high end, this will be the largest tech IPO of 2026 so far. It could also prove the appetite for even bigger blockbuster offerings in the wings, like SpaceX and possibly OpenAI and Anthropic.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at TechCrunch.
Discussion
0 commentsMore from TechCrunch
