If Cerebras can grow beyond its initial benefactor, G42, this IPO will be a rocket ship. If not, … It may be hard to believe, but there hasn’t been a single IPO for an AI hardware company. Period. Not One.

A second risk, and likely the biggest, is Cerebras' customer concentration. Right now, AI company G42 from the United Arab Emirates accounts for 87% of Cerebras' sales in the first six months of 2024. G42 and affiliated entities are also behind next year's $1.43 billion order, meaning that concentration will only grow.

Cerebras competes with industry leader Nvidia in the lucrative artificial intelligence chip market. The Sunnyvale, California-based company—which will trade under the ticker symbol “CBRS”—seeks to capitalize on investor excitement for AI by conducting a hot IPO (Initial Public Offering).

To take market share from Nvidia, Cerebras would need to add application software that is more advanced and useful than Nvidia’s CUDA.

Cerebras Systems, an AI chipmaker that lists among its competitors tech giants Nvidia, Microsoft, and Intel, filed for an IPO Monday, looking to capitalize on widespread enthusiasm about the AI industry.

Cerebras Systems, a startup competing with industry leader Nvidia for a slice of the lucrative AI chip market, said late on Monday its revenue surged more than threefold in 2023, in a filing to go public in the U.

If Cerebras Systems goes public, Cerebras Systems stock may find a place in semiconductor ETFs like VanEck Semiconductor ETF SMH, iShares Semiconductor ETF SOXX, First Trust Nasdaq Semiconductor ETF FTXL and SPDR S&P Semiconductor ETF XSD. Renaissance IPO ETF IPO may also include the Cerebras stock in its portfolio.

Cerebras touts the world's largest and fastest AI chip, and competes with Nvidia, a top player in the AI computing space.