NVDA Rival Cerebras Plans To List On Thursday Next Week: Report

• Plans to raise $3.5 billion through the offering. 
• The company is offering 28 million shares for $115 to $125 each, and at the top of the price range, Cerebras would have a market value of $26.6 billion.
• Cerebras announced a three-year deal with OpenAI in January. 

Chipmaker and Nvidia (NVDA) rival Cerebras is planning to list on the Nasdaq Global Select Market next week after filing its paperwork last month to go public under the ticker CBRS. 

Cerebras plans to begin trading publicly on Thursday, May 14, WSJ reported, citing a person familiar with the matter. It could be the largest IPO in the U.S. so far this year. 

The Sunnyvale, California-based company is offering 28 million shares for $115 to $125 each, according to its filing with the US Securities and Exchange Commission (SEC). 

At the top of the price range, Cerebras would have a market value of $26.6 billion, based on the shares outstanding in its filing. Accounting for stock options, restricted share units, and warrants, the company would have a diluted valuation of about $33 billion, according to Bloomberg calculations. 

Cerebras hopes to rival Nvidia as several tech companies look to reduce their reliance on NVDA’s chips. While NVDA’s architecture involves connecting thousands of small GPUs (like the Blackwell B200) on a silicon wafer, Cerebras creates one big chip - the size of a dinner plate.  

Cerebras and OpenAI Relationship

OpenAI had struck a deal worth over $10 billion with Cerebras in January this year, and the ChatGPT maker separately has warrants that allow it to buy over 33 million shares in the company.

OpenAI is integrating Cerebras's Wafer-Scale Engine (WSE) to handle high-speed inference. This technology allows OpenAI to drastically reduce latency for long-form model outputs (like complex coding or reasoning tasks). 

Amazon Web Services (AWS) had also signed a deal in March to use the company’s chips for its data centers. 

What Does Cerebras Do?

Founded in 2015, Cerebras builds specialized AI chips and supercomputers designed to train and run large AI models faster than traditional GPU setups, along with software and cloud services to support them. 

It positions itself as a simpler, high-speed alternative to Nvidia by using a single massive chip rather than many smaller ones. Recently, it has been expanding into AI cloud services, opening new data centers, partnering with big tech firms, and securing large compute deals.

Cerebras first filed for a public listing in September 2024 and then decided to withdraw its plan and raise $1.1 billion privately in October of that year.

Retail View on NVDA, OpenAI 

Retail sentiment on NVDA was ‘extremely bullish’ and was ‘bearish’ on OpenAI. While NVDA had ‘high’ message volumes on Stocktwits, OpenAI had ‘low’ volumes. 

NVDA stock has jumped 15.4% year-to-date.  

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