AI chip firm Cerebras reveals three-fold revenue growth in US IPO filing

(Reuters) – Cerebras Systems has more than tripled annual revenue in 2023, the artificial intelligence chip firm said on Monday in its filings for a U.S. initial public offering.

Companies looking to adopt AI applications like ChatGPT have benefited from the companies behind the semiconductors needed to power the technology. Shares of AI chip leader Nvidia have doubled in market value this year and briefly dethroned Microsoft as the world’s most valuable company.

Still, concerns about overhype around AI stocks led some investors to exit the tech sector earlier in the year, and Cerebras’ IPO will likely serve as a litmus test for the market’s AI appetite.

The Sunnyvale, Calif.-based company did not disclose the terms or size of its offer.

Easing recession fears and strong equity growth have also rejuvenated the US IPO market in 2024 after two weak years.

Cerebras designs processors for AI training and inference and builds AI systems to power the processors and provide them with data.

On Monday, the company disclosed total revenue of $78.74 million for the 12 months ended December 31, 2023, up from $24.62 million in 2022.

It posted a net loss of $127.16 million for the same period, compared to a loss of $177.72 million in 2022.

Cerebras has been backed by a number of high-profile investors, including Abu Dhabi Growth Fund and Coatue Management.

Citigroup, Barclays, UBS Investment, Wells Fargo Securities and Mizuho are among the underwriters of the offering.

Cerebras will list on the Nasdaq Global Market under the symbol “CBRS”.

(Reporting by Pritam Biswas in Bengaluru; Editing by Devika Syamnath)