{"id":170660,"date":"2025-09-30T15:26:07","date_gmt":"2025-09-30T15:26:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/170660\/"},"modified":"2025-09-30T15:26:07","modified_gmt":"2025-09-30T15:26:07","slug":"nvidia-challenger-cerebras-raises-1-1bn-ahead-of-ipo","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/170660\/","title":{"rendered":"Nvidia challenger Cerebras raises $1.1bn ahead of IPO"},"content":{"rendered":"

Stay informed with free updates<\/p>\n

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Chipmaker Cerebras Systems has raised more than $1bn from investors including Fidelity and Donald Trump Jr\u2019s firm 1789 Capital as it looks to woo customers away from rival Nvidia. <\/p>\n

The Silicon Valley start-up, which will be valued at $8.1bn after the investment, is targeting an initial public offering to cash in on increased demand for advanced semiconductors triggered by the artificial intelligence<\/a> boom. <\/p>\n

Chips have become the most sought-after commodity for start-ups such as OpenAI, Anthropic and Big Tech groups seeking to train and run their own AI models. That has propelled Nvidia to become the world\u2019s most valuable company, with a market capitalisation of $4.4tn. <\/p>\n

Nvidia<\/a>\u2019s dominance stems from the strength of its graphics processing units, or GPUs, in training AI models, and the popularity of its widely used Cuda software.<\/p>\n

But Cerebras chief executive Andrew Feldman claims his 10-year-old company\u2019s technology is faster than Nvidia at managing the coding and natural language queries that make up the bulk of AI tools\u2019 usage. <\/p>\n

\u201cWe built the largest chip in the history of the computer industry. Our chip is the size of a dinner plate, most chips are the size of postage stamps,\u201d said Feldman. \u201cThat allows us to achieve a performance you can\u2019t achieve by lashing together smaller chips.\u201d<\/p>\n

Nvidia has compounded its advantage by funnelling its vast revenues into a series of investment deals with AI model developers and infrastructure groups around the world.<\/p>\n

Those deals have included a $5bn investment<\/a> into Intel, a $100bn commitment<\/a> to OpenAI and a \u00a3500mn commitment<\/a> to cloud computing start-up Nscale in the past month alone. <\/p>\n

\u201cWhen companies see their technical advantage diminish they start using their balance sheet,\u201d said Feldman. \u201c[Nvidia] are going to start trying to tie people up with their balance sheet rather than their technical advantage.\u201d\u00a0<\/p>\n

Nvidia said that it \u201cwins on merit, as reflected in our benchmark results and value to customers. Nvidia AI infrastructure provides an unparalleled combination of performance, versatility and value.\u201d<\/p>\n

Cerebras customers include Meta, Amazon Web Services and French AI lab Mistral, as well as a number of US government departments and healthcare institutions. <\/p>\n

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Fidelity Management & Research Company and Atreides Management, founded by former Fidelity portfolio manager Gavin Baker, led the funding round. Tiger Global and Valor Equity Partners, a backer of a number of Elon Musk\u2019s companies, also participated \u2014 alongside 1789 Capital, where President Donald Trump\u2019s son is a partner.<\/p>\n

Cerebras was still targeting a public listing in the near term, said Feldman. Cerebras kicked off its IPO process a year ago but was delayed by a Committee on Foreign Investment in the US review of an investment in the company by Abu Dhabi AI group G42, which remains Cerebras\u2019 largest customer and a key partner.<\/p>\n

The review was resolved in March this year, Feldman said, clearing the way to go public. <\/p>\n

Cerebras has been lossmaking since its launch, as it invests heavily in research and development. The company does not publish up-to-date financial metrics, but disclosed last year that its net loss in the first half of 2024 was $67mn, with revenues of $136mn. <\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the Artificial intelligence myFT Digest — delivered directly to…\n","protected":false},"author":2,"featured_media":170661,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,733,4308,86,56,54,55],"class_list":["post-170660","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-technology","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/170660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=170660"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/170660\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/170661"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=170660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=170660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=170660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}