Cerebras Systems IPO Surges 68%, Pushing the AI Chipmaker to a $95 Billion Valuation

AI chipmaker Cerebras Systems surged 68% in its Nasdaq debut on Thursday, May 14, closing at $311.07 after pricing shares at $185 per share. The company raised $5.55 billion by selling 30 million shares, valuing Cerebras at about $95 billion at market close.

The stock opened at $350 and peaked at $386 before settling back during Thursday's trading session. This marks the largest initial public offering for a U.S. tech company since Uber went public in 2019. The rollercoaster didn't stop there, though. As CNBC reported, Cerebras shares saw volatility in early Friday, May 15, trading as the market digested the massive debut.

We now have two new tech billionaires from the blockbuster debut. CEO Andrew Feldman is holding a stake worth $3.2 billion, while co-founder and technology chief Sean Lie owns shares valued at $1.7 billion. The pair founded Cerebras roughly a decade ago.

Early investors were also rewarded from the IPO in proportion to their conviction. Benchmark, which co-led Cerebras' Series A funding round in 2016, is sitting on shares worth $5.5 billion at Thursday's close. Foundation Capital owns a stake valued at $4.8 billion. Demand for the IPO was exceptionally strong, with investor appetite exceeding available shares by more than 20 times.

Why Cerebras Pulled Its 2024 IPO Filing Before This Week's $95 Billion Debut

Cerebras originally filed to go public in September 2024, but withdrew its submission after the prospectus was heavily scrutinized. The main concern was the company's heavy reliance on a single customer in the United Arab Emirates, Microsoft-backed G42, which accounted for 85% of revenue in 2024.