Nvidia competitor Cerebras may postpone IPO amid national security review – Reuters

Artificial intelligence startup Cerebras Systems (CBRS) is likely to postpone its initial public offering as it faces delays with a national security review of United Arab Emirates-based G42’s minority investment in the company.

Cerebras (CBRS) is expected to call off the roadshow scheduled for early next week, according to a Reuters report on Tuesday, which cited people familiar with the matter.

The Committee on Foreign Investment in the United States (CFIUS), whose job is to review foreign investments for national security concerns, is evaluating G42’s investment in Cerberus, the company disclosed in its S-1 filing on Sept. 30.

Cerebras (CBRS) still expects CFIUS to give the company approval for the G42 deal this year, according to the Reuters report.

Last Monday, Cerebras, a competitor to Nvidia (NVDA), filed for an IPO. In late August, Cerebras introduced an AI inference solution which it says is 20x faster than Nvidia (NVDA) GPU-based hyperscale clouds.

Cerebras declined to comment to Reuters. G42 didn’t immediately respond to requests for comment.

Cerebras is one of several startups looking to capitalize on surging demand for semiconductors that power AI, in a market which is currently dominated by tech giant Nvidia (NVDA).

The company, in its IPO filing, said it has experienced rapid growth, with revenue of $78.7M and $24.6M for the years ended 2023 and 2022, respectively, representing year-over-year growth of 220%. During the six months ended June 30, 2024 and 2023, it generated $136.4M and $8.7M in revenue, respectively.