The Silicon Valley company would be among the first A.I. companies to go public since the release of ChatGPT nearly two years ago.
For the past two years, stock investors interested in the artificial intelligence boom have had limited options, primarily major tech companies like Microsoft and Nvidia.
However, that is set to change with the upcoming market debut of Cerebras, a chip company aiming to challenge Nvidia’s dominance.
Cerebras, headquartered in Sunnyvale, California, moved closer to going public by revealing its investor prospectus on Monday, positioning itself to capitalize on the growing excitement surrounding AI.
The start-up hopes to end the recent lull in high-profile IPOs.
In the first half of the year, only 82 companies went public in the U.S., a modest increase from last year, according to EY. Among them, just 24 were venture-backed start-ups, including Reddit and Rubrik. Crunchbase News noted in May that at the current rate, it would take 49 years for all U.S.-based start-ups valued at $1 billion or more to go public.
Despite favorable conditions for IPOs, such as falling interest rates and rising tech stock prices, many companies have postponed their plans until 2025 to avoid potential market disruptions tied to the presidential election.
“We’re in more of a ‘wait-and-see’ environment,” said Mark Schwartz, IPO advisory leader at EY.
Cerebras would be one of the first AI companies to go public since OpenAI’s ChatGPT launch in late 2022. Other AI-focused firms, such as Tempus A.I., a healthcare company, and Astera Labs, a semiconductor company, have already gone public this year.
Despite concerns that AI hype has outpaced reality, with cautious reports from Goldman Sachs and Sequoia Capital, demand for AI products remains strong and continues to grow.