The Information
How many AI chip designers can the public market support? We’ll get a sense of that on Thursday when Cerebras Systems, the biggest of a new generation of chip designers dedicated to AI, is expected to go public at a valuation of $35 billion. If it follows the pattern of other AI-related IPOs, such as cloud firm CoreWeave, Cerebras will be a big hit. CoreWeave went public a year ago at $40 a share and, despite a lot of ups and downs, it closed on Friday at $114. (Most other tech IPOs from last year, that had no AI exposure, have had a very different experience.) CoreWeave has been well received even though it is burning through billions of dollars in cash right now as it ramps up its network of data centers. Investors’ favorable reaction to it suggests Wall Street will look past the fact that Cerebras is also burning cash and focus on its AI exposure. (Demand for stock in the IPO is also strong, Bloomberg reported on Friday).
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