Cerebras Systems Inc., an artificial intelligence chip developer and operator of data center systems, is aiming to raise as much as $4 billion through an initial public offering, people familiar with the matter said. The privately held Sunnyvale, California firm is targeting a valuation in the neighborhood of $40 billion as it prepares to take the offering to market.
Those same people, who asked not to be identified, said the company could start formal marketing for the IPO as soon as Monday. Banks working on the transaction have already reported indications of interest that collectively exceed $10 billion in potential orders, according to the sources.
Company executives and bankers involved in the process have not made public statements, and the people cautioned that the final size, valuation, and timing of the listing remain subject to change. The new fundraising target marks an increase from earlier plans reported in March, when the company had been seeking to raise roughly $2 billion in the IPO.
The information available does not include confirmations from Cerebras or the underwriters, and the details provided by the people familiar with the plans may be revised as the offering process proceeds. As with many public offerings, the figures cited at this stage represent targets and indications rather than definitive commitments.
Context and process
The account given by the unnamed sources describes an active marketing phase where the company and its banks are gauging demand among institutional investors. Indications of interest that exceed preliminary offering targets can influence final sizing and pricing, but the sources emphasized that the terms could change before the IPO is finalized.
Recent changes
The plan to pursue as much as $4 billion represents an adjustment upward from the roughly $2 billion target that had been reported previously in March. Beyond the change in the fundraising goal, the available information does not specify additional shifts to valuation methodology, timing beyond the potential near-term marketing start, or firm underwriting commitments.