The Wait Goes On Unpacking the Cerebras Systems IPO

The AI-hardware boom is transforming global technology markets. Among the frontrunners is Cerebras Systems, a company building wafer-scale AI chips and systems that claim to outpace GPU-based architectures. Yet despite its lofty ambitions and strong funding, Cerebras’s planned initial public offering (IPO) has been mired in delays, regulatory scrutiny and uncertainty. This article breaks down the story behind the IPO, what’s at stake and why it matters for investors.

Background: Who is Cerebras?

Founded in 2016 by a team of semiconductor and systems veterans, Cerebras Systems builds purpose-built AI chips and systems for training and inference of large language models and other compute-intensive AI workloads. SEC+3Forge Global+3Wikipedia+3

Their flagship hardware is the Wafer-Scale Engine (WSE) which integrates a massive number of cores on a single silicon wafer, rather than many discrete chips. This lets Cerebras claim higher memory bandwidth, fewer interconnect bottlenecks, and faster AI model training and inference. Cerebras+2Wikipedia+2

In the broader AI hardware ecosystem, Cerebras positions itself as a challenger to incumbents such as Nvidia, AMD and Intel that dominate GPU/accelerator markets. Investopedia+1

So far so good on the technology front. But as we shall see, moving from private growth to public markets brings new challenges.

The IPO Filing: What They Proposed

In September 2024, Cerebras filed a registration statement (Form S-1) with the U.S. Securities and Exchange Commission (SEC) to go public on the Nasdaq under ticker symbol “CBRS”. Forge Global+3Investopedia+3SEC+3

The filing revealed the following key points:

• The number of shares and price range were not yet determined at filing time. Cerebras+1

• The company expected after the IPO to list Class A common stock (voting) and a Class N non-voting common stock, convertible into Class A. SEC

• They planned the offering to raise significant capital and transition into public markets, although precise proceeds were not yet made public. walkthestreetcapital.com+1

In short: the ambition was there—but the details were still in flux.

Financials & Growth Metrics

From the documents and analyst reports:

• For the first half of 2024, Cerebras reported revenue of US$136.4 million, compared with around US$8.7 million in the same period a year earlier. Barron’s+1

• For that period, it also reported a net loss of US$66.6 million. Barron’s+1

• As of 2023, the company reported revenue of approximately US$78.7 million (though data vary by source). MarketWatch+2Wikipedia+2

These numbers highlight high growth (especially in 2024) but also significant losses common to many scale-up hardware companies in the AI era.

Key Risks Revealed in the Filing

The S-1 and analyst commentary flagged several risk factors—some more unique than others.

Customer concentration

One major risk is the heavy reliance on a single customer: Abu Dhabi-based G42. The filing indicated that G42 accounted for around 87 % of revenue in H1 2024. Barron’s+1 That kind of concentration invites concern: if the major customer pulls back, the impact is dramatic.

Regulatory and security scrutiny

Because G42 is based outside the U.S. and has prior connections to Chinese firms, the investment and customer relationship triggered a review by the Committee on Foreign Investment in the United States (CFIUS). In March 2025 it was reported that the IPO process was stalled pending national-security review of that investment. Reuters+2EBC Financial Group+2

Market competition and technological risk

While wafer-scale engines are novel, they must scale commercially and compete against entrenched players with vast resources (e.g., Nvidia). Risk remains that either competition or shifting technology paradigms could erode the advantage.

Timing & macro-environment

The broader IPO market, investor sentiment toward hardware/AI, interest rates, and supply-chain disruptions all play roles in whether a hardware company can command a strong valuation.

Why the IPO is Delayed (and Possibly Deferred)

Despite the S‐1 filing and expectations, the IPO remains not yet launched (and may be deferred). Key reasons:

• As noted, the CFIUS review of G42’s investment created regulatory uncertainty, delaying the deal. Reuters+1

• Private-market funding remained strong for Cerebras: in September 2025 the company raised US$1.1 billion in a Series G round, valuing it at about US$8.1 billion. Reuters+1

• In October 2025 Cerebras filed to withdraw its U.S. IPO plans (for now), citing the fresh funding and strategic flexibility. Reuters

So rather than immediate listing, the company appears to be choosing to stay private longer, despite the public filing.

Valuation & Market Opportunity

Even though the IPO price is not set, analysts and documents suggest:

• Prior private valuation: around ~US$4.7 billion in 2024. EBC Financial Group

• IPO expectations ranged between US$7-8 billion valuation (or raise of US$750 million-US$1 billion) based on investor sentiment in AI hardware. EBC Financial Group+1

• Market opportunity: AI model size, training data, demand for inference infrastructure—Cerebras claims to address a “trillion-dollar data centre modernization” opportunity. Investopedia+1

In essence: the upside is high if all goes well—but so are the risks (and uncertainty).

Strategic Implications for Investors & the AI-Hardware Ecosystem

The story of Cerebras’s IPO carries implications beyond just one company.

• Investor appetite for AI hardware: A successful IPO could open the floodgates for more AI-chip / accelerator firms. A delayed or weak offering may temper enthusiasm.

• Geopolitics and security oversight: The CFIUS review of G42’s investment in Cerebras signals that foreign-investment, national-security and tech sovereignty concerns are now mainstream for “strategic” hardware firms.

• Competition in the AI chip space: The war for AI infrastructure hardware is intense. Companies like Nvidia have large lead, while others (including Cerebras) aim to disrupt. How the market values such challengers is a bell-wether.

• Valuation discipline in floating hardware firms: Hardware scale-up companies historically face long lead times to profitability. The IPO market’s tolerance for losses and customer‐concentration risk is being tested.

What To Watch Moving Forward

If you are tracking the IPO (or considering investment in related firms), key data points include:

1. Clear IPO timetable: Has Cerebras set a definitive date or targeted quarter for listing?

2. Customer diversification: Will the company reduce dependence on G42 and sign multiple large clients?

3. Profitability path: While losses now are expected, do the margins and business model appear scalable over time?

4. Regulatory clearance and structure: Are the foreign-investment issues resolved? What share classes and voting structures will be used?

5. Competitive performance: Are the claims of hardware leadership translating into meaningful commercial traction (contracts, deployments, revenue growth)?

6. Valuation and terms: What will be the IPO price, implied valuation and investor lock-ups? Are existing backers selling shares or staying on?

The anticipated IPO of Cerebras Systems offers a fascinating case study at the intersection of cutting-edge AI hardware, venture-to-public transition, regulatory geopolitics and the evolving economics of large-scale compute. The company boasts impressive technology and rapid growth, but also faces non-trivial risks: customer concentration, regulatory delays, and stiff competition.