Proactive Investors - Chipmaking startup Cerebras Systems has picked Citigroup Inc (NYSE:C) to lead an initial public offering, according to a report from Bloomberg citing people familiar with the matter.
The company reportedly chose the bank after engaging with potential advisors on the US listing, which is targeted for the second half of 2024 at the earliest.
Founded by former AMD (NASDAQ:AMD) subsidiary SeaMicro employees in 2015, the company raised $250 million in a series F financing round in 2021 which valued it at more than $4 billion.
Analysts at Wedbush believe Cerebras has demonstrated the most success, defined by estimated revenue, out of the host of AI chip startups, including Groq, Samba Nova, Graphcore and Tenstorrent.
They noted that its sales growth is underpinned by its work with G42, though it has also announced several other customers including most recently the Mayo Clinic.
“We view Cerebras's wafer scale AI chip and bonded SRAM as providing unique high end performance that is required by a certain subset of AI customers though its work with G42 as well as its recent partnership with Qualcomm (NASDAQ:QCOM) certainly suggest its solutions can reach beyond just high performance training requirements,” the Wedbush analysts wrote.