Cerebras Systems, a startup rivaling industry giant Nvidia in the lucrative AI chip market, announced on Monday that its revenue surged more than threefold in 2023. The company made the disclosure in a filing for its upcoming U.S. initial public offering (IPO).
Cerebras, a tech company poised to make its debut on the stock market this year, has a CEO with a controversial past. In 2007 Cerebras CEO Andrew Feldman pleaded guilty in 2007 to one count of circumventing accounting controls while serving as Vice President of Marketing at Riverstone Networks, a publicly traded internet router seller.
After a two-year slump, U.S. IPOs have seen a resurgence in 2024, fueled by optimism around a soft landing and record stock market highs. Analysts anticipate continued growth, with AI firms like Cerebras expected to lead the wave of tech listings.
Despite Cerebras’ ground breaking AI hardware and strong market potential, this part of the leadership’s background could impact investor confidence and the company's public perception as it heads toward its listing.
Cerebras Systems reported a significant revenue increase to $78.7 million in the 12 months ending December 31, compared to $24.6 million the previous year. The company's net loss narrowed to $2.92 per share, down from $4.28 per share.
Notably, 83% of its annual revenue came from its partnership with G42, an AI tech group partially owned by Abu Dhabi's sovereign investor Mubadala. In its IPO prospectus, Cerebras highlighted its commercial relationship with G42 as a key factor influencing its future performance, underscoring the importance of this strategic alliance for its growth trajectory.
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