AI chipmaker Cerebras raises $7.1 billion in year’s biggest IPO

Cerebras Systems raised $5.55 billion in its initial public offering (IPO), marking the largest fundraise of 2026 and pricing shares at $185 each—above its targeted range of $150 to $160. The AI chipmaker’s market valuation reached approximately $40 billion, with a fully diluted value of around $49 billion, according to Bloomberg calculations. The IPO outpaced demand, with orders exceeding 20 times the available shares. Cerebras joins a competitive field of chipmakers vying to challenge Nvidia’s dominance in AI semiconductors. The company already collaborates with major tech firms, including Amazon, which announced plans to use Cerebras chips alongside its Trainium processors, and OpenAI, which deployed its first model on Cerebras hardware in February. OpenAI holds 33.4 million warrants for Cerebras shares, some contingent on delivery milestones and the company’s market value surpassing $40 billion. Weeks before its IPO, Cerebras reportedly received an acquisition approach from Arm Holdings and SoftBank Group, though no deal materialized. Financial filings show Cerebras reported net income of $87.9 million on $510 million in revenue for 2025, a sharp improvement from a $484.8 million net loss on $290.3 million in revenue the prior year. The company’s strong performance underscores growing investor confidence in AI-driven semiconductor demand. The IPO arrives ahead of a potential record-breaking listing by SpaceX, which aims to raise up to $75 billion later this year. Cerebras’ public debut solidifies its position as a key player in the AI hardware race, leveraging partnerships with industry leaders to accelerate adoption of its specialized chips.