Cerebra Systems Plans to Boost IPO Price and Share Count
May 10 – Cerebra Systems Inc. is looking to increase both the price and size of its upcoming initial public offering, possibly announced as soon as Monday, due to growing interest in the artificial intelligence chipmaker’s stock, according to sources familiar with the situation.
The company is contemplating a new price range for its IPO, aiming for $115 to $125 per share, potentially rising to $150 to $160 per share. Additionally, they are considering increasing the number of shares available for purchase from 28 million to 30 million. The sources requested anonymity because this information hasn’t yet been publicly disclosed.
If the new pricing is adopted, Cerebras could raise around $4.8 billion at the upper end, which is an increase from the $3.5 billion estimated under the original plan. It’s worth noting that this amount might still fluctuate before the final pricing decision is made.
This adjustment follows a notable acceleration in AI usage, resulting in heightened demand for high-performance chips. The semiconductor industry is facing significant pressure in the technology supply chain. Reports indicate that orders for Cerebras’ IPO have surpassed 20 times the available shares, prompting the company to handle this increased interest as it approaches its pricing date on May 13.
Cerebras did not reply to requests for comment.
Previously, Bloomberg News had indicated that the company might adjust its IPO target range from $125 to $135 per share.
Basing its operations in Sunnyvale, California, Cerebras specializes in chips designed to operate advanced AI models, competing in a market largely led by Nvidia. As AI labs transition from merely training models to actual deployment, the demand for Cerebras’ processors is escalating. The company’s chips are more effective for inference tasks—the computations that help AI models answer user inquiries—compared to traditional GPU chips which have been the standard in model training.
This upcoming IPO marks Cerebras’ second attempt to go public. Initially, it had filed for an IPO in 2024 but withdrew that application last year. Their collaboration with G42, a UAE-based AI firm that constituted over 80% of its revenue in early 2024, raised flags for a national security review by the Committee on Foreign Investment in the U.S., which later cleared the partnership.
Since that time, Cerebras has also gained Amazon and OpenAI as customers, solidifying its position in the market.
According to Dealogic, this IPO is set to be the largest in the world so far this year.
The initiative is being spearheaded by Morgan Stanley, Citigroup, Barclays, and UBS Group AG. Cerebras intends to list its shares on the Nasdaq Global Select Market under the ticker symbol CBRS.
