Cerebras CEO Andrew Feldman speaks to the media at his Coroboa office on March 12, 2024 in Santa Clara, California.
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Artificial intelligence chipmaker Cerebra Systems has raised the estimated price range for its initial public offering. The company is currently considering selling the shares for $150 to $160 per share, up from the $115 to $125 per share range it disclosed last week, according to Monday’s filing.
At the high end of the new range, Cerebras could earn up to $4.8 billion through its IPO. The company could end up being worth up to $48.8 billion on a fully diluted basis. This is higher than the $23 billion valuation that Cerebras announced in February as part of a funding round.
Some companies want to train and run generative artificial intelligence models like those that power OpenAI’s ChatGPT. Nvidiagraphics processing units (GPUs) have become the industry standard. Cerebras says its chips run faster and cost less than GPUs. The speed that Cerebras touts has helped the company win more than $20 billion in contracts from OpenAI, which relies on Cerebras for the models it writes code for.
Rather than primarily focusing on selling hardware, Cerebras has been equipping data centers with its own chips and providing cloud services to customers. So you’re up against cloud infrastructure providers. However, in March, the top cloud providers Amazon Web Services announced a deal to deploy Cerebras chips in its data centers.
Cerebras has received additional attention in court over Elon Musk’s lawsuit against OpenAI CEO Sam Altman. OpenAI co-founder and president Greg Brockman said in a California court last week that Cerebras’ planned chips represent “the computing that we thought we needed.” Brockman said OpenAI had discussed merging with Cerebras and Musk was open to the deal.
Nasdaq expects Cerebras’ IPO to take place on May 14th.
—CNBC’s Ashley Capoot contributed to this report.
WATCH: ‘It’s a good time to get into AI hardware,’ says Andrew Feldman, CEO of Cerebra Systems
