Cerebras Systems prepares for blockbuster IPO with OpenAI ties central to valuation
The offering, priced between $115 and $125 per share, marks a potential return to public markets after a 2024 delay linked to regulatory scrutiny of a major investor.
Cerebras Systems is advancing plans for a significant initial public offering, intending to sell 28 million shares at a price range of $115 to $125 each. This transaction is projected to raise approximately $3.5 billion, potentially valuing the company at up to $26.6 billion. If successful at the high end of the pricing range, this would mark the largest technology IPO of 2026 to date.
A defining feature of this offering is Cerebras' substantial financial relationship with OpenAI, which includes a $1 billion loan secured by warrants allowing OpenAI to purchase over 33 million shares. This arrangement has drawn significant attention, with the close ties previously cited in legal proceedings involving Elon Musk and OpenAI. The company's primary product, the Wafer-Scale Engine 3, is designed to deliver faster inference and lower power consumption than traditional GPU-based chips, positioning it as a key player in the artificial-intelligence hardware market.
Major investors including Rick Gerson's Alpha Wave, Benchmark, Lior Susan's Eclipse, Fidelity, and Foundation Capital hold stakes exceeding 5% in the firm. Notable angel investors include OpenAI founders Sam Altman, Greg Brockman, and Ilya Sutskever, as well as Andy Bechtolsheim and Lip-Bu Tan. The breadth of institutional backing suggests strong confidence in the company's trajectory as it seeks to list on a public exchange.
Cerebras had hoped to go public in 2024 but was delayed due to a federal review of an investment from Abu Dhabi-based G42, a major customer. In September of the previous year, the company raised $1.1 billion at an $8.1 billion valuation, followed by a $1 billion Series H round in February at a $23 billion valuation. These recent capital raises have set the stage for the current public market debut.
Banks are reportedly fielding orders worth $10 billion for the 3.5 billion shares being offered, suggesting strong market demand that could lead to a higher final share price. Such appetite indicates that the company will likely price its shares even higher than the announced range, raising even more cash for itself and increasing value for its existing shareholders.
The multi-year agreement signed between Cerebras and OpenAI in September is valued at over $10 billion and includes the aforementioned loan and warrants. While OpenAI is not currently a large shareholder, the warrant structure means it could become one, further intertwining the fates of the two technology giants in the eyes of the market.
