AI chip company Cerebras reports a three-fold jump in revenue as it files for its U.S. initial public offering

(Reuters) – Cerebras Systems saw annual revenue rise more than threefold in 2023, the artificial intelligence chip company said on Monday in filings for a U.S. initial public offering.

Companies seeking to launch AI applications like ChatGPT benefit the companies behind the semiconductors needed to run the technology. The market value of the shares of the market leader for AI chips Nvidia has more than doubled this year and briefly dethroned Microsoft as the most valuable company in the world.

Still, concerns about excessive euphoria surrounding AI-related stocks led some investors to exit the tech sector earlier this year, and Cerebras' IPO will likely serve as a litmus test for the market's AI appetite.

The Sunnyvale, California-based company did not disclose the terms or size of its offer.

Fading recession fears and a strong stock rally have also revitalized the U.S. IPO market in 2024 after two lackluster years.

Cerebras designs processors for AI training and inference and builds AI systems to power and feed data to the processors.

On Monday, the company reported total revenue of $78.74 million for the 12 months ended December 31, 2023, up from $24.62 million in 2022.

During the same period, the company reported a net loss of $127.16 million, compared to a loss of $177.72 million in 2022.

Cerebras has been backed by a number of high-profile investors, including Abu Dhabi Growth Fund and Coatue Management.

Citigroup, Barclays, UBS Investment, Wells Fargo Securities and Mizuho are among the underwriters of the offering.

Cerebras is listed on the Nasdaq Global Market under the symbol “CBRS.”

(Reporting by Pritam Biswas in Bengaluru; Editing by Devika Syamnath)