AI chipmaker Cerebras Systems, famous for its massive wafer-scale engine chips, is reportedly planning its IPO for 2024 to really shake up Nvidia, the giant in the AI chip market. The company is really going to be put under the spotlight by its cutting-edge technology: the WSE-3 chip, which contains many more cores and much more memory than Nvidia’s H100 GPU. These technical advantages notwithstanding, Cerebras faces stiff competition from Nvidia but also other industry players, such as AMD, Intel, Google, and Microsoft, who are also developing their own AI chips.
Cerebras can be well but financially proud on its impressive jump from revenues at $8.7 million to early 2023 to $136.4 million in the first six months of 2024. Despite this, the firm believes it is still losing since the company notified investors of a net loss of $66.6 million for the first six months in 2024. Group 42 is one of the AI companies in the UAE that brought in 83% of the revenue in the past year.
The number that would be raised in an IPO at a valuation of between $7 billion and $8 billion could go up to $1 billion. That is premised on growth in demand for AI hardware, where its footprint in the AI chip market would increase as a result. However, key risks lie in market competition and regulatory scrutiny due to the company’s foreign tie-ups.
