Cerebras Systems, an AI chip startup based in Sunnyvale, California, has filed for an IPO and plans to trade under the ticker 'CBRS' on Nasdaq.

This IPO filing is a significant milestone for Cerebras as it seeks to enter the public market amidst a booming sector, although the company has not disclosed the size or terms of the offering.

The demand for AI applications, such as ChatGPT, has significantly boosted the semiconductor market, benefiting companies like Cerebras and industry leaders such as Nvidia.

Cerebras reported a remarkable increase in revenue, with sales tripling from $78.7 million in 2022 to $136.4 million in the first half of 2024.

Despite this growth, the company recorded a net loss of $66.6 million in the first half of 2024, although this represents an improvement compared to a loss of $77.8 million during the same period last year.

A significant portion of Cerebras' revenue, approximately 87%, came from Abu Dhabi's Group 42 Holding Ltd. in the first half of 2024.

CEO Andrew Feldman believes that Cerebras' chips and systems have the potential to disrupt the AI computing industry, which is currently dominated by Nvidia's GPUs.

Cerebras' flagship product, the WSE-3 AI chip, is marketed as having more cores and memory than Nvidia's popular H100 chip, enhancing efficiency in AI model training.

The IPO filing indicates Cerebras' plans to sustain revenue growth by acquiring new customers and developing new products, including a recently launched cloud service for AI inference workloads.

Cerebras has received backing from notable investors, including the Abu Dhabi Growth Fund and Coatue Management, which reflects growing investor interest in AI-related businesses.

The company has warned investors about potential supply chain disruptions that could adversely impact its operations.

As the U.S. IPO market is anticipated to recover in 2024, fueled by diminishing recession fears and a strong rally in equities, Cerebras aims to capitalize on this trend.