Artificial intelligence chipmaker Cerebras Systems has raised its estimated price range for its upcoming initial public offering (IPO).
The company now aims to sell shares between $150 and $160 each, an increase from the previous range of $115 to $125 disclosed last week.
At the top of this updated range, Cerebras could raise up to $4.8 billion in the IPO, valuing the company at as much as $48.8 billion on a fully diluted basis.
This valuation more than doubles the $23 billion Cerebras announced in a funding round earlier this year in February.
Cerebras operates in a space dominated by companies like Nvidia, whose graphics processing units (GPUs) are the industry standard for training and running generative AI models, such as those powering OpenAI’s ChatGPT.
The company claims its chips outperform GPUs in speed and cost efficiency.
These high-performance chips have helped Cerebras secure a commitment of over $20 billion from OpenAI, which uses Cerebras technology for a coding AI model.
Source (CNBC)
