News & Updates
The latest news and updates from companies in the WLTH portfolio.
The Second Time Will Be The IPO Charm For Cerebras
Waferscale chip pioneer and AI systems maker Cerebras Systems filed to go public back in September 2024 because it needed a Wall Street cash infusion so it could expand its customer base. At the time, it had raised $720 million in five rounds of funding, and its Series F raise was three years in the rear view mirror. With a valuation of $4 billion, it was time. Particularly because 85 percent of the company's revenue in 2024 was being driven by one lighthouse customer: Group 42, the Arabic AI model maker formed in 2018 in Abu Dhabi and backed by the government of the United Arab Emirates. G42, as the company is commonly known, inked a deal with Cerebras in July 2023 to buy $300 million of hardware, software, and services from Cerebras, and in May 2024 it upped the ante and said it would buy another $1.43 billion in gear and also purchase 22.85 million shares in Cerebras for $335 million within a year. As far as we can tell from the S-1 reports that Cerebras has filed in September 2024 and then again this week as it has a second go at going IPO, G42 has spent $434.5 million on Cerebras gear and support for its cloud buildout of a mix of CS-2 and CS-3 waferscale systems from 2023 through 2025, representing 49.4 percent of revenues for Cerebras for those years. We have combed the two S-1 reports to give you a composite picture of the financials: The biggest money maker for Cerebras in 2025 was not G42, however, but was a new customer added last year: the Mohamed bin Zayed University of Artificial Intelligence, which is a graduate-level research institution that was established in April 2020 and that also located in Abu Dhabi. So these two customers have pull from the same money bag and accounted for 86 percent of the $510 million that Cerebras brought in last year. But some funny things happened on the way to that initial IPO attempt. First, code assistants became the killer app for the GenAI era. And second, agentic AI - systems talking to systems - started being a thing, and latency matters a whole lot more than it does with chattybots with humans asking questions. Third, people started figuring out that very expensive GPU clusters made by Nvidia were very good at batching up inference work with reasonable response times for chattybots, but some of those exotic machines created by Cerebras and rivals Groq and SambaNova Systems and loaded up with SRAM cache and not so dependent on HBM stacked memory, had a memory bandwidth-to-compute ratio advantage that allowed for very low latency at low levels of interactivity. (Meaning small or no batches, but real-time and often single user.) And so, private equity companies started lining up to give Cerebras big bags of money and the company quietly pulled the plug on the initial IPO attempt. The company's Series G funding round came in at $1.1 billion in October 2025, pushing its valuation up to $8.1 billion, and another $1 billion in Series H funding came in this year in February, driving the company's valuation to $23 billion. As these funding rounds were happening, model maker OpenAI and cloud builder Amazon Web Services inked deals to install Cerebras to drive their AI inference workloads. While much has been made of the transformative $10 billion deal that Cerebras inked with OpenAI back in January, which includes a $1 billion working capital loan to help Cerebras scale up its manufacturing operations. The latest S-1 says that this OpenAI deal has the potential to scale to $20 billion over multiple years, but confirms that the initial install is for 750 megawatts of CS systems to be installed through 2028 and options for another 3 gigawatts of gear in 2029 and 2030. We believe that OpenAI will be mostly installing CS-4 machines, based on a new WS-4 architecture that we expect to come out later this year, but that is a hunch. OpenAI and Cerebras are also doing some sort of co-development for future CS machinery, something that has not been detailed at all. In March this year, Cerebras inked a "binding term sheet" with AWS to marry CS-3 systems to its homegrown and current Trainium 3 and as well as its future Trainium 4 AI systems, which Cerebras characterized as a multi-year deal "to bring fast inference to an even bigger scale through global distribution." The contrast in that sentence snippet above referred to the OpenAI deal. We do not know if that deal has been fully negotiated and signed, but the latest S-1 says the term sheet is "binding with respect to pricing, exclusivity, minimum capacity, and certain other protections in favor of AWS." The prospective deal also includes a warrant for 2.7 million shares of Cerebras, and depending on the valuation that Cerebras gets on Wall Street, could be worth a lot. The vesting of this warrant is pegged to product purchases - something we have seen from other AI infrastructure suppliers. Of these two deals, AWS could end up being more important in the long run than OpenAI because AWS has both a lot of customers and a lot money it can pull from other businesses to invest in expensive AI systems. OpenAI is ambitious and clever, but is almost certainly losing as much money each quarter as it is generating in revenues - if not more. Here's the thing to contemplate as Cerebras files to go public again, and this time, we think it will finish out. Nvidia "acquihired" most of Groq as last year came to an end for an enormous $20 billion to add Groq LPU motors to its inference stack, allowing for consistent low latency that its GPU systems cannot deliver. Nvidia co-founder and chief executive officer showed precisely how much Nvidia needed Groq in his keynote at the GTC 2026 conference in mid-March. That keynote showed full well how breaking inference into two pieces - the prefill part where context is provided and tokens of that context are chewed on and analyzed and the decode part where the model generates tokens as a response - results in better overall GenAI performance, and perhaps overall better price/performance. Certainly better user experience, whether that user is human or an AI agent. With Nvidia basically owning Groq, everybody else is hunting around for a fast GenAI decode engine, and the wonder is why Intel has not already bought SambaNova and why AMD has not already bought Cerebras. Arm/SoftBank might be able to create something interesting for low latency inference from the Graphcore acquisition SoftBank it did in July 2024 and sell it to system makers, much as it is now doing with Arm server CPUs as evidenced by the AGI CPU that Arm co-created with Meta Platforms and that it will be selling to any and all buyers later this year. For now, Cerebras is content to have pocketed that $2.1 billion in equity and expanded into a cloud builder, provided the deal gets done, and a dominant AI model builder, which has to come up with the money to serve up tokens to its customers, one way or another. A few thoughts to wrap this up. The cash and equivalents line from the latest S-1 does not report the full liquidity of the company right now, or even at the end of December last year. There was another $228.7 million in restricted cash at year end, and Cerebras had another $406.5 million in marketable securities by the end of Q4 2025, too. That is $1.34 billion in liquid assets. In January 2026, Cerebras got $1 billion net from the Series H round and the $1 billion in working capital from OpenAI, too. So it has $3.34 billion of liquidity. However, that OpenAI buildout is expensive, and Cerebras has the money to start tackling it. A few more billion dollars from Wall Street will certainly help. But doing the IPO is also about expanding the company enough - and making it famous enough - to attract other customers who may not buy gigawatts of capacity, but who will add up to a proper customer pyramid if all goes well. The real pressure is that Cerebras has raised $2.55 billion in funding, and now all of those investors want to make some money off that cash and the GenAI boom before something turns. There may not be a better time for Cerebras to go public than 2026, because even AI cannot predict what 2027 might look like in this crazy world we all live in.
What is Cursor? SpaceX could buy the AI company for a whopping $60 billion.
Anthropic and OpenAI have emphasized AI coding tools, and now Elon Musk's SpaceX is looking to bulk up its efforts in this buzzy area Cursor CEO Michael Truell says the new SpaceX collaboration is a "meaningful step on our path to build the best place to code with AI." SpaceX's next acquisition could end up being Cursor, the rapidly growing artificial-intelligence startup behind popular tools that have been praised by Nvidia CEO Jensen Huang. In a statement posted to X on Tuesday, SpaceX said it is working with Cursor to create what it said would be the "world's best coding and knowledge work AI." In February, SpaceX acquired xAI, which operates the Grok chatbot. Both companies were founded by Elon Musk. SpaceX said that Cursor had given it the right to outright buy the startup later this year for $60 billion, far more than its most recent private-market valuation. Otherwise, SpaceX could pay Cursor $10 billion for their collaboration. Last November, Cursor said that it had closed a $2.3 billion funding round at a $29.3 billion post-money valuation. Just five months earlier, the startup was valued at $9.9 billion after raising $900 million. And the company is set to raise another roughly $2 billion in a funding round that would value it at more than $50 billion, according to Bloomberg News. A representative for Cursor did not immediately return a request for comment. It's unclear when SpaceX could officially buy Cursor, were it to pursue that option. The announcement comes as SpaceX prepares for a historic initial public offering that could happen as early as June, and as xAI looks to compete against the likes of OpenAI and Anthropic, both of which have emphasized AI coding tools. See: Space investing is heating up as SpaceX rockets toward a record-breaking IPO SpaceX aims to raise around $75 billion in its IPO and ended 2025 with $24.7 billion in cash on hand, Reuters has reported, citing excerpts of the company's confidential registration filing. Adding Cursor to SpaceX's empire would be expensive but give the company access to a popular tool widely used by developers and engineers. On its website, Cursor cites endorsements from leaders at Stripe, OpenAI and Eureka Labs. "My favorite enterprise AI service is Cursor," Nvidia's (NVDA) Huang told CNBC in October. "Cursor is an AI coder and every one of our engineers, 100 percent, is now assisted by AI coders, and our productivity has gone up incredibly." Cursor launched its first AI coding assistant in 2023. The tool quickly became popular and has helped lead to the rise of "vibe coding." Earlier this month, it unveiled Cursor 3, which it called a "unified workspace" for building software with assistance from AI agents. The company also recently launched Composer 2, a model that it promoted as offering "frontier-level" coding intelligence. However, it was later reported to have been based on a Chinese company's open-source model. "Yes, that is the base we started from," Lee Robinson, a Cursor vice president, said on X. "And we are following the license through inference partner terms." Michael Truell, Cursor's CEO, said on X on Tuesday that the arrangement marked a "meaningful step on our path to build the best place to code with AI." In a blog post on Tuesday, Cursor said its efforts to train more capable models was "bottlenecked by compute." It plans to leverage xAI's infrastructure to "dramatically scale up" its models' intelligence. Cursor has said that it has annualized revenue of more than $1 billion and that its products are used by more than half of the Fortune 500, including Uber Technologies (UBER) and Adobe (ADBE). It counts both Google (GOOG) (GOOGL) and Nvidia as investors and partners. The company's growth is rapid but dovetails with the surge of hype around AI companies. Anthropic and OpenAI are both widely expected to pursue IPOs as soon as this year and have seen their valuations skyrocket in a relatively short period of time. Read more: Nvidia rival Cerebras is taking another swing at an IPO -William Gavin This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
The Cerebras IPO filing isn't the same mess as before - Cautious Optimism
Pretty darn strong. Here's the company's quarterly results breakdown: In the table, we can see greater than 100% growth from the December 2024 quarter to the December 2025 period. We also see gross margin improvement in recent quarters, though Cerebras did manage better gross margin results in early 2024 when it was far smaller. Setting aside quarters due to accounting wiggles, Cerebras's most recent two quarters yielded incredibly impressive growth (+31% and +26%, sequentually, respectively), with net losses that are more than tolerable for a company as close to the cutting edge of AI compute as Cerebras appears to be. Comparing calendar 2024 with 2025 yields the following metrics: We can see from the numbers that both sides of Cerebras's business are doing well. People want to buy its chips, and the company is seeing quickly rising demand for use of its chips to handle inference. That's a double threat. Wait, but what about customer concentration? Looking backwards, Cerebras has not done a brilliant job diversifying its customer base. Looking forward, it has. Let me explain. If we read the S-1 filing regarding 2025 results, the picture is about as bleak as it was back in 2024: A substantial portion of our revenue is driven by a limited number of customers. Group 42 Holding Ltd (together with its affiliates, "G42") accounted for 24.0% and 85.0% of our total revenue for the years ended December 31, 2025 and 2024, respectively, and in the year ended December 31, 2025, Mohamed bin Zayed University of Artificial Intelligence ("MBZUAI") accounted for 62.0% of our total revenue. While I don't want to overstate my knowledge of the inner workings of the Emirati economy, it is worth mentioning that Peng Xiao is both Group CEO of G42 and a member of the MBZUAI board of trustees. Other people also hold roles at both enterprises. So when we consider Cerebras's 2024 and 2025, we see results that are incredibly proscribed to not merely the MENA region, or even the UAE, but Abu Dhabi industry itself. Looking ahead, the picture changes rapidly. In December of 2025, Cerebras signed a massive deal with OpenAI. Announced publicly in January of this year, "OpenAI and Cerebras have signed a multi-year agreement to deploy 750 megawatts of Cerebras wafer-scale systems to serve OpenAI customers." Per OpenAI, the capacity will come online in tranches. Cerebras also signed a deal in March with Amazon Web Services (AWS), which will see the cloud platform "become the first hyperscaler to deploy Cerebras systems in its data centers." The deal includes the creation of a "co-designed, disaggregated inference-serving solution that will integrate AWS Trainium3 chips with Cerebras CS-3 systems, connected via high-bandwidth networking, to partition inference workloads across Trainium3 and CS-3." Sounds great. If you want to get access to market demand, being present in AWS is a big deal. (Just ask OpenAI!) The OpenAI deal has big bones. The AWS agreement could matter, too. Cerebras notes that it has $24.6 billion worth of remaining performance obligations (RPOs), with a "significant amount of the balance [being] attributable to the Company's obligations pursuant to a master relationship agreement with OpenAI." Does this resolve the revenue concentration concerns? Partially! Deals with OpenAI and AWS certainly make Cerebras less reliant on its historically-critical MENA customers. But the proof will come in its revenue diversifying in practice (results), and not merely theory (forecasts). When will we learn more? Given that Cerebras likely waited to refile to go public until both its OpenAI and AWS deals were locked in. The company didn't want a repeat of its first run at the public markets. Thanks to its IPO refiling timing, we can expect Cerebras to provide some information about its Q1 2026 results before it prices. That means newer, fresher information on the OpenAI deal's impact on its results, if any. We'll still be staring at the very first months of the arrangement, meaning we might not see much revenue from it at this juncture. What's the real bet here? That purpose-built chips for handling AI inference become more popular over time. While the venerable GPU has a lot going for it, we're seeing major clouds build their own chips (Amazon, Google, Microsoft, Meta) for a reason. Yes, derisking from a single supplier source is a goal. But so too are chips that are more efficient at a specific AI task, not merely performant for all. The underlying bet to that wager is that demand for AI compute continues to scale. As we discussed this morning, the compute crunch is showing little progress towards loosening. How long the world will prove compute-constrained is up to your judgment, and your interest in snapping up Cerebras shares in its IPO will likely hinge on how bullish you are on future compute demand. All told, Cerebras's bet on big fucking chips is coming good, and the company has a solid shot at real revenue diversification in the coming years. Precisely how to price Cerebras we can leave to the market. But I don't think it will take too long to get Cerebras public, and its backers liquid.
Late-Stage Private Markets Show Signs of Reacceleration as Private Shares Fund Reports Strong 1Q Sales and IPO Pipeline, with SpaceX as Largest Position
NEW YORK--(BUSINESS WIRE)--Apr 21, 2026-- The Private Shares Fund (PRIVX/PIIVX), managed by Liberty Street Advisors, Inc. (Liberty Street), reported strong first quarter performance alongside an expanding pipeline of portfolio companies progressing toward potential IPO, tender, or acquisition events. The Fund's largest holding, SpaceX, has been the subject of recent IPO-related developments, while several other key holdings, including Cerebras and Kraken, have advanced S-1 activity. These developments reflect increasing activity across late-stage private markets. All information is as of March 31, 2026, unless otherwise indicated.
Flurry of US IPOs Race to Tap Market Ahead of SpaceX Debut
The pickup in IPOs this month has raised $5.4 billion, and newly-public companies have sparked excitement across Wall Street with a weighted-average return for the year's US IPO class of 21%. The US IPO market has gone from desolate to bustling in a matter of weeks, with companies looking to raise as much as $17.3 billion this month alone and capitalize on stocks' resilience. Debuts in the coming weeks are set to raise billions of dollars as companies look to go public before what's expected to be the market's biggest event of the year: SpaceX's record-breaking initial public offering, which Elon Musk's firm is planning for June. "If I'm any company and I want to have a chance of attracting investors that invest in IPOs, I'd probably rather do it before that deal comes," said Bob Doll, chief executive officer of Crossmark Global Investments. With the Iran war still harboring the potential to throw equities into a tailspin, and financial statements for companies seeking to go public needing a refresh later in May, IPO candidates appear to have decided there's no time like the present. Get the Markets Daily newsletter. Get the Markets Daily newsletter. Get the Markets Daily newsletter. What's happening in stocks, bonds, currencies and commodities right now. What's happening in stocks, bonds, currencies and commodities right now. What's happening in stocks, bonds, currencies and commodities right now. Plus Signed UpPlus Sign UpPlus Sign Up By continuing, I agree to the Privacy Policy and Terms of Service. The pickup in IPOs this month has raised $5.4 billion, and newly-public companies sparked excitement across Wall Street when they started making people money again. The weighted-average return for the year's US IPO class, excluding blank-check vehicles and closed-end funds, has jumped to 21% from just 4.6% about a week ago, data compiled by Bloomberg show. That outpaces a 4.2% return for the benchmark S&P 500 Index. Companies have been deploying several strategies to increase the likelihood their IPOs will succeed, including lining up so-called cornerstone investors, offering a smaller pool of shares in the deal and starting with attractive discounts to publicly-listed peers. "There's been a lot more price discipline," said Dan Klausner, head of US public equity advisory at Houlihan Lokey Inc. "And success begets success, where if you have a peer that prices and trades well it becomes appealing to go at a reasonable discount." This week's expected IPOs are seeking to raise nearly $2 billion in aggregate. X-Energy Inc., a nuclear energy firm that counts Amazon.com Inc. as a backer, is targetingBloomberg Terminal $814 million. The deals would build on what's been the busiest month for bankers since December saw roughly $8.8 billion raised, primarily driven by Medline Inc.'s blockbuster debut. "We have four IPOs in market slated to price this week, and eight additional IPOs publicly filed last week -- so with continued strength in equity markets, we expect ECM to remain highly active in the near term," said Sumit Mukherjee, head of equity capital markets intelligence at JPMorgan Chase & Co. Read more on IPOs: For the latest news on equity capital markets activity in the US, Canada and Latin America, follow the channel or visit NI BFWECMUS. To subscribe to ECM Watch, Bloomberg's daily roundup of news from around the region, click here. The IPO of billionaire Bill Ackman's closed-end fund and his hedge fund will test the appetite of retail investors as it seeks to raise as much as $10 billion. The IPO is scheduled to price on April 28. The success of the coming deals will shape the landscape for more than a dozen other companies waiting in the wings to price IPOs from artificial intelligence chipmaker Cerebras Systems Inc. to Blackstone Inc.'s data-center acquisition vehicle. Both are expected to target at least $2 billion each, which would deliver consecutive months of notable IPO activity before SpaceX's likely record-setting debut.
Late-Stage Private Markets Show Signs of Reacceleration as Private Shares Fund Reports Strong 1Q Sales and IPO Pipeline, with SpaceX as Largest Position
All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here The Private Shares Fund (PRIVX/PIIVX), managed by Liberty Street Advisors, Inc. (Liberty Street), reported strong first quarter performance alongside an expanding pipeline of portfolio companies progressing toward potential IPO, tender, or acquisition events. The Fund's largest holding, SpaceX , has been the subject of recent IPO-related developments, while several other key holdings, including Cerebras and Kraken, have advanced S-1 activity. These developments reflect increasing activity across late-stage private markets. All information is as of March 31, 2026, unless otherwise indicated. Momentum Builds as Private Market Activity Develops The update comes amid improving sentiment across private equity and venture markets. Over 50% of the portfolio (+$600 million in net assets) is tied to companies that have taken steps toward or have publicly discussed undertaking Initial Public Offering (IPO) or Merger and Acquisition (M&A) transactions, including notable companies such as SpaceX, Cerebras and Kraken. Gross sales for the Fund totaled approximately $118 million for Q1 2026, representing the fifth strongest quarter in the Fund's 12-year history. As of 3/31/2026, the Fund manages approximately $1.16 billion in assets. While timing and outcomes remain uncertain, this pipeline reflects increasing momentum across late-stage private markets. SpaceX Remains Largest Position The Fund's largest holding, SpaceX, represented approximately $224 million or 19.3% of Fund net assets, reflecting a company valuation of approximately $1.25 trillion. While there can be no assurance regarding the timing, occurrence, or valuation of any future transaction, recent market commentary has referenced a potential IPO valuation at or around $2 trillion with the IPO targeted to take place the week of June 15 . Strong Liquidity Profile Supports Portfolio Flexibility The Fund enters the second quarter with a solid liquidity profile. After funding new investment opportunities and fulfilling 100% of 1 quarter redemption requests, cash and cash equivalents totaled approximately $100M. Quarterly gross sales of $118 million have increased over the past several quarters, contributing to continued growth in assets under management. Public security positions amounted to approximately $34M. The Fund also maintains a line of credit totaling $150M, which has never been drawn upon. In addition, SpaceX and the aforementioned IPOs and M&A transactions also serve as potential sources of future liquidity. "The Fund performed extremely well over the last several, very difficult, years for venture and traditional private equity funds," said Tim Reick, Liberty Street's CEO & CIO. "We are pleased to be entering this period in strong financial condition with a more vibrant IPO calendar and promising prospects ahead." Key Focus: Artificial Intelligence (AI), Defense, Aerospace The Fund continues to invest across a broad range of late-stage private companies, while increasing focus on areas driving the next phase of innovation, including artificial intelligence, defense, and aerospace. Reflecting this strategic breadth, over half of the top 25 holdings represent a variety of sectors and have additionally taken formal steps toward or publicly discussed undertaking an IPO or M&A transaction. Recent portfolio additions highlight this evolving focus, alongside existing exposure to companies advancing critical technologies across these industries. The Fund recently added two companies advancing in their respective fields: * Ayar Labs (artificial intelligence, 2015) -- developing a critical component of AI and high-performance computing with an optical input and output (I/O) chiplet that replaces traditional copper-based interconnects with light-based data links, vastly accelerating data movement critical to the growth of generative AI. * Saronic (defense, 2022) -- focused on naval warfare and defense operations with the most advanced and capable autonomous surface vessels (ASVs). "These additions reflect our emphasis on areas we believe are driving the next phase of innovation," said Kevin Moss, Managing Director and Portfolio Manager. "Artificial intelligence and defense will continue to be focus areas, alongside our existing emphasis on aerospace, as we move forward." About Liberty Street Advisors, Inc. Liberty Street Advisors, Inc. ("Liberty Street") is an SEC registered investment advisor. The firm is located in New York City and launched its first fund in 2007. Liberty Street provides access to valuable and timely investment strategies designed to help investors and financial advisors meet the challenges of today's market environment. As of 3/31/26, Liberty Street manages four open-end mutual funds, the Private Shares Fund, and a non-U.S. fund with total assets under management of over $1.9 billion. For further information, visit https://libertystreetfunds.com/ . About The Private Shares Fund The Private Shares Fund is a 1940 Act registered, closed-end interval fund that invests in a portfolio of private, late stage, growth companies. Traditionally, such access to private companies has only been available to institutional and high net worth investors through high-minimum, complex and paperwork laden private placement vehicles. The Private Shares Fund provides access to such companies without accreditation at low investment minimums, with a daily NAV, a quarterly repurchase program, no performance fees and simple 1099 tax reporting.* To learn more about the Fund's current holdings, total return performance, investment process, our team, and more, please visit the Fund's website at www.privatesharesfund.com . The Fund's top ten holdings represented 50.71% of the portfolio as of 3/31/2026: SpaceX, Grubmarket, Nanotronics, Motive, Tradeshift, Dataminr, Databricks, Upgrade, Lime and Betterment. *The investment minimums are $2,500 for the Class A Share and Class L Share, and $1,000,000 for the Institutional Share, which is waived for fee-based asset management programs. Shares in the Fund are highly illiquid, and can be sold by shareholders only in the quarterly repurchase program of the Fund. Due to transfer restrictions and the illiquid nature of the Fund's investments, you may not be able to sell your shares when, or in the amount that, you desire. Though there is no performance fee, other fees and expenses apply to the Fund. Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus with this and other information about The Private Shares Fund (the "Fund"), please visit the Fund's website at www.privatesharesfund.com , or call 1-855-551-5510. Read the prospectus carefully before investing. Investment in the Fund involves substantial risk. The Fund is not suitable for investors who cannot bear the risk of loss of all or part of their investment. The Fund is appropriate only for investors who can tolerate a high degree of risk and do not require a liquid investment. All investing involves risk including the possible loss of principal. Shares in the Fund are highly illiquid, and can be sold by shareholders only in the quarterly repurchase program of the Fund which allows for up to 5% of the Fund's outstanding shares at NAV to be redeemed each quarter. Due to transfer restrictions and the illiquid nature of the Fund's investments, you may not be able to sell your shares when, or in the amount that, you desire. The Fund intends to primarily invest in securities of private, late-stage, venture-backed growth companies. There are significant potential risks relating to investing in such securities. Because most of the securities in which the Fund invests are not publicly traded, the Fund's investments will be valued by Liberty Street Advisors, Inc. (the "Investment Adviser") pursuant to fair valuation procedures and methodologies approved by the Board of Trustees, as set forth in the prospectus. As a consequence, the value of the securities, and therefore the Fund's Net Asset Value (NAV), may vary. There are significant potential risks associated with investing in venture capital and private equity-backed companies with complex capital structures. The Fund focuses its investments in a limited number of securities, which could subject it to greater risk than that of a larger, more varied portfolio. There is a greater focus in technology securities that could adversely affect the Fund's performance. The Fund's quarterly repurchase policy may require the Fund to liquidate portfolio holdings earlier than the Investment Adviser would otherwise do so and may also result in an increase in the Fund's expense ratio. Portfolio holdings of private companies that become publicly traded likely will be subject to more volatile market fluctuations than when private, and the Fund may not be able to sell shares at favorable prices. Such companies frequently impose lock-ups that would prohibit the Fund from selling shares for a period of time after an initial public offering (IPO). Market prices of public securities held by the Fund may decline substantially before the Investment Adviser is able to sell the securities. The Fund may invest in private securities utilizing special purpose vehicles ("SPV"s), private investments in public equity ("PIPE") transactions where the issuer is a special purpose acquisition company ("SPAC"), and profit sharing agreements. The Fund will bear its pro rata portion of expenses on investments in SPVs or similar investment structures and will have no direct claim against underlying portfolio companies. PIPE transactions involve price risk, market risk, expense risk, and the Fund may not be able to sell the securities due to lock-ups or restrictions. Profit sharing agreements may expose the Fund to certain risks, including that the agreements could reduce the gain the Fund otherwise would have achieved on its investment, may be difficult to value and may result in contractual disputes. Certain conflicts of interest involving the Fund and its affiliates could impact the Fund's investment returns and limit the flexibility of its investment policies. This is not a complete enumeration of the Fund's risks. Please read the Fund prospectus for other risk factors related to the Fund. The Fund is distributed by FORESIDE FUND SERVICES, LLC. FORWARD-LOOKING STATEMENTS This release contains forward-looking statements that are subject to risks, uncertainties and other factors that may cause actual results to differ materially. Statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this press release, words or phrases generally written in the future tense and/or preceded by words such as "will," "may," "could," "expect," "believe," "anticipate," "intend," "plan," "seek," "estimate," "preliminary" or other similar words are forward-looking statements. Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Any forward-looking statement made in this press release speaks only as of the date on which it is made. Factors or events that could cause actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake any obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260421339941/en/
Late-Stage Private Markets Show Signs of Reacceleration as Private Shares Fund Reports Strong 1Q Sales and IPO Pipeline, with SpaceX as Largest Position
NEW YORK-(BUSINESS WIRE)-The Private Shares Fund (PRIVX/PIIVX), managed by Liberty Street Advisors, Inc. (Liberty Street), reported strong first quarter performance alongside an expanding pipeline of portfolio companies progressing toward potential IPO, tender, or acquisition events. The Fund's largest holding, SpaceX, has been the subject of recent IPO-related developments, while several other key holdings, including Cerebras and Kraken, have advanced S-1 activity. These developments reflect
Cerebras and Other Nvidia Rivals Just Made Key Moves. Should Nvidia Shareholders Worry?
Nvidia (NASDAQ: NVDA) has long been the artificial intelligence (AI) chip leader. The company recognized the potential of its graphics processing units (GPUs) to power this technology before most people were even talking about AI -- and at that time, Nvidia made AI its focus. This turned out very well for Nvidia, as the company has continued innovating and remained well ahead of competitors. And major rivals aren't lightweights. They are tech powerhouses such as Advanced Micro Devices and Broadcom, as well as certain Nvidia customers that are making some of their own chips -- such as Amazon. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue " But the rivals I'll talk about here aren't these technology giants. Instead, they are younger, up-and-coming players focused specifically on making AI more efficient. They are names that aren't yet publicly traded -- from Cerebras to European players Euclyd and Optalysys. And now these rivals have just made key moves. Should Nvidia shareholders worry? Let's find out. Image source: Getty Images. So, first, a quick note about Nvidia's work in the AI market so far. The company, as mentioned, is the leader, selling GPUs that power crucial AI tasks such as the training of models, and increasingly today, the inference process -- this is the model's "thinking" steps that help it make decisions and take action. Nvidia's chips, along with its complete suite of AI products and services, have delivered explosive growth over the past few years. In the latest full year, Nvidia announced a 65% increase in revenue to more than $215 billion -- and analysts expect this to continue, with a forecast for 72% growth for the current year. Nvidia supplies systems to all of the big tech players leading in this AI revolution, from Amazon to Meta Platforms, as well as research labs like OpenAI. Now, let's consider the key moves made by up-and-coming players. The biggest news is an announcement by Cerebras -- this player recently filed to go public, a move that may supercharge its ability to grow and compete with Nvidia. Cerebras' technology involves a chip that's 58 times bigger than those of Nvidia -- and the company says this size gives it more memory bandwidth than Nvidia chips, and as a result, Cerebras' chips can inference at tremendous speeds. Importantly, Cerebras announced deals with OpenAI and Amazon Web Services (AWS) this year. The OpenAI deal, worth more than $20 billion, involves 750 megawatts of Cerebras compute. And the deal with AWS offers Cerebras' chips global distribution. Meanwhile, CNBC reports that European AI chip companies are taking steps to raise more funds. Euclyd is discussing the possibility of about $118 million with investors, and Optalysys is planning on raising at least $100 million this year, according to CNBC. These players and others each have their own techniques and aim to carve out a share of the chip market. All of this shows that competition is multiplying -- and the biggest threat to Nvidia may not be another tech giant, but instead a younger player with a game-changing technology. So, should these advancements by Cerebras and others worry Nvidia shareholders? I don't think so, and here's why. First, it's important to note that Nvidia sells complete systems, and many customers have gone all in on the company's products and services. And when Nvidia updates its systems, customers may integrate these innovations with some of their current Nvidia platforms -- so they don't have to replace every component with every upgrade. All of this makes it "easy" for customers to stick with Nvidia. On top of this, the word to note here is "system" -- Nvidia isn't just selling a chip, but an entire offering, including chips, networking, and enterprise software. This may be difficult for a rival to beat. Second, Nvidia is extremely focused on innovation and reinforcing its strengths through acquisition, too. For example, the company's purchase of Groq assets last year helped boost its inference offerings. And Nvidia has not only committed to updating its chips annually, but it also spends significantly on research and development. The company reported more than $18 billion in R&D spending last year. Considering Nvidia's commitment to innovation and resources to support R&D, it seems unlikely that the company would stand by while others slip ahead. Of course, Cerebras and other smaller players could carve out some market share in the years to come -- and become successful. But this doesn't mean they will knock Nvidia out of the top spot. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $524,786!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,236,406!* Now, it's worth noting Stock Advisor's total average return is 994% -- a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Broadcom, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.
Cerebras and Other Nvidia Rivals Just Made Key Moves. Should Nvidia Shareholders Worry? | The Motley Fool
The company has stayed ahead thanks to its focus on innovation. Nvidia (NVDA +0.19%) has long been the artificial intelligence (AI) chip leader. The company recognized the potential of its graphics processing units (GPUs) to power this technology before most people were even talking about AI -- and at that time, Nvidia made AI its focus. This turned out very well for Nvidia, as the company has continued innovating and remained well ahead of competitors. And major rivals aren't lightweights. They are tech powerhouses such as Advanced Micro Devices and Broadcom, as well as certain Nvidia customers that are making some of their own chips -- such as Amazon. But the rivals I'll talk about here aren't these technology giants. Instead, they are younger, up-and-coming players focused specifically on making AI more efficient. They are names that aren't yet publicly traded -- from Cerebras to European players Euclyd and Optalysys. And now these rivals have just made key moves. Should Nvidia shareholders worry? Let's find out. So, first, a quick note about Nvidia's work in the AI market so far. The company, as mentioned, is the leader, selling GPUs that power crucial AI tasks such as the training of models, and increasingly today, the inference process -- this is the model's "thinking" steps that help it make decisions and take action. Nvidia's chips, along with its complete suite of AI products and services, have delivered explosive growth over the past few years. In the latest full year, Nvidia announced a 65% increase in revenue to more than $215 billion -- and analysts expect this to continue, with a forecast for 72% growth for the current year. Nvidia supplies systems to all of the big tech players leading in this AI revolution, from Amazon to Meta Platforms, as well as research labs like OpenAI. Now, let's consider the key moves made by up-and-coming players. The biggest news is an announcement by Cerebras -- this player recently filed to go public, a move that may supercharge its ability to grow and compete with Nvidia. Cerebras' technology involves a chip that's 58 times bigger than those of Nvidia -- and the company says this size gives it more memory bandwidth than Nvidia chips, and as a result, Cerebras' chips can inference at tremendous speeds. Importantly, Cerebras announced deals with OpenAI and Amazon Web Services (AWS) this year. The OpenAI deal, worth more than $20 billion, involves 750 megawatts of Cerebras compute. And the deal with AWS offers Cerebras' chips global distribution. Meanwhile, CNBC reports that European AI chip companies are taking steps to raise more funds. Euclyd is discussing the possibility of about $118 million with investors, and Optalysys is planning on raising at least $100 million this year, according to CNBC. These players and others each have their own techniques and aim to carve out a share of the chip market. All of this shows that competition is multiplying -- and the biggest threat to Nvidia may not be another tech giant, but instead a younger player with a game-changing technology. So, should these advancements by Cerebras and others worry Nvidia shareholders? I don't think so, and here's why. First, it's important to note that Nvidia sells complete systems, and many customers have gone all in on the company's products and services. And when Nvidia updates its systems, customers may integrate these innovations with some of their current Nvidia platforms -- so they don't have to replace every component with every upgrade. All of this makes it "easy" for customers to stick with Nvidia. On top of this, the word to note here is "system" -- Nvidia isn't just selling a chip, but an entire offering, including chips, networking, and enterprise software. This may be difficult for a rival to beat. Second, Nvidia is extremely focused on innovation and reinforcing its strengths through acquisition, too. For example, the company's purchase of Groq assets last year helped boost its inference offerings. And Nvidia has not only committed to updating its chips annually, but it also spends significantly on research and development. The company reported more than $18 billion in R&D spending last year. Considering Nvidia's commitment to innovation and resources to support R&D, it seems unlikely that the company would stand by while others slip ahead. Of course, Cerebras and other smaller players could carve out some market share in the years to come -- and become successful. But this doesn't mean they will knock Nvidia out of the top spot.
Nvidia Rival Cerebras Files for an IPO: What Investors Should Know | The Motley Fool
Cerebras could prove a formidable competitor to AI chip leader Nvidia, in my opinion. Investors seem poised to soon have another investment choice in the hot artificial intelligence (AI) chip space: Cerebras Systems. The venture capital-backed, Silicon Valley-based company announced on Friday, April 17, that it filed a registration statement with the Securities and Exchange Commission (SEC) indicating its intent to hold an initial public offering (IPO) of its common stock. Given publicly available data, Cerebras could prove a formidable competitor to Nvidia (NVDA +0.19%), which currently dominates the AI chip market. That said, the AI chip market is growing at such a blistering pace that there is room for several companies in this business to perform very well over the long run. Cerebras did not indicate when it plans to hold its IPO, other than to say the timing will depend on market conditions. It said the number of shares of stock to be offered and the price range for the proposed offering have not yet been determined. Cerebras expects its stock to be listed in the United States on the Nasdaq stock exchange under the ticker "CBRS." Cerebras was founded in 2015 to bring wafer-scale AI computing to market. Wafer-scale refers to using a full silicon wafer to create one massive chip, rather than cutting it into smaller dies. Several of its co-founders held technology leadership roles - such as Chief Technology Officer (CTO) -- at chipmaker Advanced Micro Devices (AMD) before starting the company. AMD is Nvidia's main competitor in the graphics processing unit (GPU) market. Currently, GPUs are the gold standard for AI training and inference (deployment) -- a fact that Cerebras aims to change. On its website, Cerebras touts that it "stands alone as the world's fastest AI inference and training platform." It adds that "Organizations across [diverse fields] use our CS-2 and CS-3 systems to build on-premise supercomputers, while developers and enterprises everywhere can access the power of Cerebras through our pay-as-you-go cloud offerings." CS-2 and CS-3 stand for Cerebras System 2 and 3, respectively, the company's second- and third-generation wafer-scale AI supercomputers. These systems are powered by the company's AI processors, the current of which is the WSE-3 (Wafer-Scale Engine 3). Cerebras touts that this giant chip is the "world's largest and fastest AI processor." Recently, Cerebras gained some big-name customers, including ChatGPT maker OpenAI, Amazon (AMZN 0.91%), and Facebook parent Meta Platforms. Customers also include pharmaceutical giant GSK (formerly GlaxoSmithKline), Mayo Clinic, the U.S. Department of Energy, and the U.S. Department of Defense. In January 2026, Cerebras and OpenAI signed a major multiyear partnership agreement in which OpenAI will deploy 750 megawatts of Cerebras wafer-scale systems to serve its customers. The "deployment will roll out in multiple stages beginning in 2026, making it the largest high-speed AI inference deployment in the world," according to the press release. Last week, it was reported that OpenAI would invest $20 billion in Cerebras chips and tech over three years. In March 2026, Cerebras signed a deal with Amazon AWS, under which AWS will become the first hyperscaler (operator of massive-scale data centers) to deploy Cerebras chips in its own data centers. Significant new investors in Cerebras' Series G round in September included Tiger Global Management, founded and run by billionaire Chase Coleman, and 1789 Capital, of which Donald Trump Jr. is a partner. Some existing investors also participated in the round. Other notable investors include Sam Altman, co-founder and CEO of OpenAI. Group 42 Holding, based in the United Arab Emirates (UAE), was an early and major investor. It -- along with affiliated companies -- has also been Cerebras' largest customer, by far, through 2025. In 2026, this heavy customer revenue concentration should begin to significantly lessen due to the recent big deals Cerebras has inked. In 2025, Cerebras' revenue surged 76% year over year to $510 million, according to its SEC filing. This growth was driven by 69% in hardware and 99% in cloud and other services. The company's financials are solid for a start-up. While it reported a loss from operations of $145.9 million in 2025, this was due to significant research and development spending. Its 2025 R&D expenditure was 48% of its annual sales. 2025 net income was positive, but only because of a significant positive "net, other income" stemming primarily from "a change in fair value and extinguishment of forward contract liability." Operating cash flow was negative $10.1 million, so Cerebras was not far from break-even on a cash from operations basis. In short, all signs point to Cerebras Systems stock as worth considering for investment -- at the very least, worth watching.
Nvidia Rival Cerebras Files for an IPO: What Investors Should Know
Cerebras could prove a formidable competitor to AI chip leader Nvidia, in my opinion. Investors seem poised to soon have another investment choice in the hot artificial intelligence (AI) chip space: Cerebras Systems. The venture capital-backed, Silicon Valley-based company announced on Friday, April 17, that it filed a registration statement with the Securities and Exchange Commission (SEC) indicating its intent to hold an initial public offering (IPO) of its common stock. Given publicly available data, Cerebras could prove a formidable competitor to Nvidia (NASDAQ: NVDA), which currently dominates the AI chip market. That said, the AI chip market is growing at such a blistering pace that there is room for several companies in this business to perform very well over the long run. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue " Image source: Cerebras Systems. Cerebras did not indicate when it plans to hold its IPO, other than to say the timing will depend on market conditions. It said the number of shares of stock to be offered and the price range for the proposed offering have not yet been determined. Cerebras expects its stock to be listed in the United States on the Nasdaq stock exchange under the ticker "CBRS." Cerebras was founded in 2015 to bring wafer-scale AI computing to market. Wafer-scale refers to using a full silicon wafer to create one massive chip, rather than cutting it into smaller dies. Several of its co-founders held technology leadership roles - such as Chief Technology Officer (CTO) -- at chipmaker Advanced Micro Devices (AMD) before starting the company. AMD is Nvidia's main competitor in the graphics processing unit (GPU) market. Currently, GPUs are the gold standard for AI training and inference (deployment) -- a fact that Cerebras aims to change. On its website, Cerebras touts that it "stands alone as the world's fastest AI inference and training platform." It adds that "Organizations across [diverse fields] use our CS-2 and CS-3 systems to build on-premise supercomputers, while developers and enterprises everywhere can access the power of Cerebras through our pay-as-you-go cloud offerings." CS-2 and CS-3 stand for Cerebras System 2 and 3, respectively, the company's second- and third-generation wafer-scale AI supercomputers. These systems are powered by the company's AI processors, the current of which is the WSE-3 (Wafer-Scale Engine 3). Cerebras touts that this giant chip is the "world's largest and fastest AI processor." Recently, Cerebras gained some big-name customers, including ChatGPT maker OpenAI, Amazon (NASDAQ: AMZN), and Facebook parent Meta Platforms. Customers also include pharmaceutical giant GSK (formerly GlaxoSmithKline), Mayo Clinic, the U.S. Department of Energy, and the U.S. Department of Defense. In January 2026, Cerebras and OpenAI signed a major multiyear partnership agreement in which OpenAI will deploy 750 megawatts of Cerebras wafer-scale systems to serve its customers. The "deployment will roll out in multiple stages beginning in 2026, making it the largest high-speed AI inference deployment in the world," according to the press release. Last week, it was reported that OpenAI would invest $20 billion in Cerebras chips and tech over three years. In March 2026, Cerebras signed a deal with Amazon AWS, under which AWS will become the first hyperscaler (operator of massive-scale data centers) to deploy Cerebras chips in its own data centers. Significant new investors in Cerebras' Series G round in September included Tiger Global Management, founded and run by billionaire Chase Coleman, and 1789 Capital, of which Donald Trump Jr. is a partner. Some existing investors also participated in the round. Other notable investors include Sam Altman, co-founder and CEO of OpenAI. Group 42 Holding, based in the United Arab Emirates (UAE), was an early and major investor. It -- along with affiliated companies -- has also been Cerebras' largest customer, by far, through 2025. In 2026, this heavy customer revenue concentration should begin to significantly lessen due to the recent big deals Cerebras has inked. In 2025, Cerebras' revenue surged 76% year over year to $510 million, according to its SEC filing. This growth was driven by 69% in hardware and 99% in cloud and other services. The company's financials are solid for a start-up. While it reported a loss from operations of $145.9 million in 2025, this was due to significant research and development spending. Its 2025 R&D expenditure was 48% of its annual sales. 2025 net income was positive, but only because of a significant positive "net, other income" stemming primarily from "a change in fair value and extinguishment of forward contract liability." Operating cash flow was negative $10.1 million, so Cerebras was not far from break-even on a cash from operations basis. In short, all signs point to Cerebras Systems stock as worth considering for investment -- at the very least, worth watching. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $524,786!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,236,406!* Now, it's worth noting Stock Advisor's total average return is 994% -- a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. Beth McKenna has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Meta Platforms, and Nvidia. The Motley Fool recommends GSK. The Motley Fool has a disclosure policy.
Ahead of Cerebras' IPO, How Durable Are the AI Chipmaker's Profits?
From its dependence on UAE revenue to its special agreements with OpenAI, here's what you need to know about the Nvidia rival. After delays, artificial intelligence chipmaker Cerebras has filed to go public. The Nvidia NVDA rival's S-1 shows revenue of $510 million in 2025, up 76% from the year before. The filing also discloses a $24.6 billion order backlog, most of it tied to a December deal with OpenAI to supply 750 megawatts of AI compute through 2028, with options for nearly 3 gigawatts more by 2030. OpenAI advanced Cerebras a $1 billion loan and received warrants for 33 million near-free shares. But Cerebras' profitability is driven in large part by a paper gain. In 2024, the company signed a deal with Abu Dhabi tech company G42 to sell its preferred shares, resulting in a $401 million loss that year. But in 2025, that deal came under US national security scrutiny, and it was eventually restructured. That scrutiny helped led to a delay in the company's IPO filing. Cerebras was able to remove that liability from its balance sheet, recording a $363 million paper gain and making its 2025 financials look more rosy. In reality, the company posted an operating loss of $75.7 million, wider than the 2024 operating loss of $21.8 million. Still, Cerebras remains highly reliant on the United Arab Emirates, with entities in the country making up 86% of the company's revenue. The Mohamed bin Zayed University of Artificial Intelligence accounted for 62% of the firm's revenue in 2025, while G42 accounted for 24%. Meanwhile, revenue from US-billed customers dropped 34% from $282.7 million in 2024 to $187.6 million in 2025. Founded in 2016 and based in Sunnyvale, California, Cerebras designs chips for AI-centric workloads. More recently, instead of selling its chips, the company began operating its own data centers powered by its chips, selling access to AI developers. The S-1 disclosed that some of Cerebras' biggest VC backers are Alpha Wave, Benchmark, Foundation Capital, and Fidelity. In February, Cerebras raised a $1 billion Series H at a $23 billion valuation.
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Inside Cerebras' IPO filing
Cerebras' aim is to eventually hit a $250 billion valuation, per its new prospectus. Behind the scenes: CEO Andrew Feldman and CTO Sean Lie are set for additional share payouts should the company reach $75 billion, $150 billion, and $250 billion in average valuation within nine years. Zoom out: Investors worried that Cerebras' revenue was heavily concentrated in Abu Dhabi when it previously filed. The new filing appears to address that, lining up contracts with OpenAI and Amazon's AWS. * The $20 billion OpenAI deal could potentially dwarf the size of current Cerebras annual revenue (nearly $510 million last year). Between the lines: OpenAI doesn't need to spend the $20 billion in its agreement to receive a good chunk of a potential 10% stake in the company in return. * OpenAI already has access to about a sixth of that stake, as part of an agreement for it to lend $1 billion to Cerebras. * Another 17% or so of Sam Altman-led company shares in the chipmaker will vest if Cerebras maintains a $40 billion valuation on average for a month. That's not far off from the $35 billion Cerebras is seeking in the IPO -- especially without three mega AI IPOs to dry up markets for other AI bets. * OpenAI will have access to the rest of the stake if it fully buys up the 2GW of AI inference compute capacity. Flashback: OpenAI inked a similar deal with AMD last year that also gave OpenAI an up to 10% stake in the chipmaker, also dependent on the delivery of certain GPU products and AMD's share price eventually hitting $600. * That deal was widely seen as a way for OpenAI to finance its chip buying. Context: The cap table of Coreweave, a cloud data center competitor, was dominated by crossover investors in its IPO last year. * Cerebras' largest investors include Alpha Wave Ventures, Benchmark, Eclipse Ventures, Fidelity, and Foundation Capital. The bottom line: The AI world's entanglements aren't going away.
AI Chipmaker Cerebras Files for IPO
The move comes after the vendor forged significant deals with OpenAI and AWS earlier this year. Silicon-based chip manufacturer Cerebras Systems is targeting an initial public offering. The 2015 startup, which says it is building the "fastest AI infrastructure in the world," filed on April 17 with the Securities and Exchange Commission to go public on the Nasdaq exchange. The filing does not disclose the size of the offering or the share price. However, it is understood that the IPO is likely to go ahead soon, possibly as early as next month. The stock will be listed under the ticker symbol CBRS, with Morgan Stanley, Citigroup, Barclays and UBS Investment Bank as lead underwriters. Mizuho and TD Cowen, meanwhile, will act as bookrunners. The filing provides insight into the figures that prompted Cerebras' decision. It showed that in 2025, the vendor recorded $510 million in revenue, representing 76% year-over-year growth. Net income was $237.8 million in 2025, as opposed to a net loss of $481.6 million in 2024. This upward trajectory is being seen as vindication for the company's decision to operate its chips in data centers rather than sell direct to companies. In February, Cerebras raised $1.1 billion in Series H funding at a valuation of about $23 billion. This followed a $1.1 billion Series G round in September. Cerebras claims its Wafer-Scale Engine 3 is the world's largest and fastest commercialized AI processor. According to Cerebras, it is nearly 60 times bigger than Nvidia's B200 chip but uses a fraction of the power per unit compute, while delivering inference up to 15 times faster. Earlier this year, Cerebras agreed to a deal to supply 750 megawatts of its wafer-scale systems to OpenAI, with the generative AI vendor saying it would use the compute for real-time responses for coding, inference, image generation and complex reasoning. This year also saw a deal with AWS to use Cerebras chips in Amazon data centers. However, this is not the first time Cerebras has eyed an IPO. It scrapped plans in October last year, without providing an explanation at the time,
Nvidia Chipmaking Rival and AI Startup Cerebras Systems Files for IPO | The Motley Fool
Cerebras isn't generating an operating profit, and investors should review its share structure and concentration risk before considering investing in its IPO. Investors would be forgiven if they've never heard of Cerebras Systems. The start-up believes that artificial intelligence (AI) workloads "require purpose-built silicon," and further suggests that "modifying existing compute architectures [will] not realize AI's potential." Cerebras has created a solution it believes will displace Nvidia's graphics processing units (GPUs) as the dominant force in AI and has filed an S-1 with the Securities and Exchange Commission (SEC) to go public as early as next month. Cerebras originally planned its initial public offering (IPO) last year but shelved its plans after raising $1 billion in private markets. The company plans to go public on the Nasdaq exchange, using the ticker "CBRS." Cerebras hasn't yet said how many shares it plans to issue, the price of those shares, or how much it plans to raise. The company plans to go public sometime in mid-May. Cerebras created the Wafer-Scale Engine (WSE) -- a massive semiconductor that the company says is 58 times larger than Nvidia's B200 AI chip. The WSE combines 900,000 compute cores, boasts "19 times more transistors, 250 times more on-chip memory, and 2,625 times more memory bandwidth" than Nvidia's B200. For context, multiple Nvidia AI chips are linked together to work in unison, so this represents a novel approach. Cerebras says it solves the inherent latency problem that plagues AI processing. The company says that "communications is thousands of times faster on-chip than across chips," so by keeping all the processing on a single giant chip, it avoids the latency issue. This solution has attracted a number of high-profile customers. Earlier this year, Cerebras inked a $20 billion, 750 megawatt deal with OpenAI. It has also entered into a multi-year deal with Amazon Web Services (AWS) to use Cerebras chips in its data centers for AI inference. Terms of the deal weren't disclosed, but it could serve as a validation of Cerebras' approach. Perhaps the most intriguing aspect of Cerebras is its financial results. In 2025, revenue of $510 million grew 76% year over year, while generating net income of $238 million -- but that comes with an asterisk. The company generated an operating loss of $146 million, but benefited from $391 million in "other income," resulting from the remeasurement of a contract liability that was removed from its balance sheet. In other words, it had nothing to do with the company's operations. Without that benefit, the company's net loss would have been roughly $153 million. Cerebras reported remaining performance obligations (RPO) of $25 billion as of Dec. 31, of which the company expects to recognize 15% in 2026 and 2027, 43% in 2028 and 2029, and the remainder thereafter. Finally, Cerebras has a complicated multiclass share structure with three classes of common stock. Class A shares carry one vote per share and will be issued to the public. Class B shares are entitled to 20 votes per share and will be held by early investors and insiders, who will retain majority voting control. Additionally, the company issued warrants to OpenAI and Amazon, allowing them to buy up to $1.27 billion in non-voting Class N shares. We don't have all the details and won't know more until Cerebras files a revised S-1 with the SEC. Until then, investors should remember that while the company certainly has potential, there are risks as well. Cerebras hasn't yet been subjected to the glare of the public spotlight, and it isn't yet profitable. Furthermore, just two customers accounted for 86% of the company's revenue in 2025, the very definition of customer concentration risk. As Cerebras gains more converts, that risk should moderate, but it's worth noting nonetheless. As such, investors interested in acquiring a stake should make it a small part of a well-balanced portfolio.
Nvidia Chipmaking Rival and AI Startup Cerebras Systems Files for IPO
Cerebras isn't generating an operating profit, and investors should review its share structure and concentration risk before considering investing in its IPO. Investors would be forgiven if they've never heard of Cerebras Systems. The start-up believes that artificial intelligence (AI) workloads "require purpose-built silicon," and further suggests that "modifying existing compute architectures [will] not realize AI's potential." Cerebras has created a solution it believes will displace Nvidia's graphics processing units (GPUs) as the dominant force in AI and has filed an S-1 with the Securities and Exchange Commission (SEC) to go public as early as next month. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue " Image source: Getty Images. Cerebras originally planned its initial public offering (IPO) last year but shelved its plans after raising $1 billion in private markets. The company plans to go public on the Nasdaq exchange, using the ticker "CBRS." Cerebras hasn't yet said how many shares it plans to issue, the price of those shares, or how much it plans to raise. The company plans to go public sometime in mid-May. Cerebras created the Wafer-Scale Engine (WSE) -- a massive semiconductor that the company says is 58 times larger than Nvidia's B200 AI chip. The WSE combines 900,000 compute cores, boasts "19 times more transistors, 250 times more on-chip memory, and 2,625 times more memory bandwidth" than Nvidia's B200. For context, multiple Nvidia AI chips are linked together to work in unison, so this represents a novel approach. Cerebras says it solves the inherent latency problem that plagues AI processing. The company says that "communications is thousands of times faster on-chip than across chips," so by keeping all the processing on a single giant chip, it avoids the latency issue. This solution has attracted a number of high-profile customers. Earlier this year, Cerebras inked a $20 billion, 750 megawatt deal with OpenAI. It has also entered into a multi-year deal with Amazon Web Services (AWS) to use Cerebras chips in its data centers for AI inference. Terms of the deal weren't disclosed, but it could serve as a validation of Cerebras' approach. Perhaps the most intriguing aspect of Cerebras is its financial results. In 2025, revenue of $510 million grew 76% year over year, while generating net income of $238 million -- but that comes with an asterisk. The company generated an operating loss of $146 million, but benefited from $391 million in "other income," resulting from the remeasurement of a contract liability that was removed from its balance sheet. In other words, it had nothing to do with the company's operations. Without that benefit, the company's net loss would have been roughly $153 million. Cerebras reported remaining performance obligations (RPO) of $25 billion as of Dec. 31, of which the company expects to recognize 15% in 2026 and 2027, 43% in 2028 and 2029, and the remainder thereafter. Finally, Cerebras has a complicated multiclass share structure with three classes of common stock. Class A shares carry one vote per share and will be issued to the public. Class B shares are entitled to 20 votes per share and will be held by early investors and insiders, who will retain majority voting control. Additionally, the company issued warrants to OpenAI and Amazon, allowing them to buy up to $1.27 billion in non-voting Class N shares. We don't have all the details and won't know more until Cerebras files a revised S-1 with the SEC. Until then, investors should remember that while the company certainly has potential, there are risks as well. Cerebras hasn't yet been subjected to the glare of the public spotlight, and it isn't yet profitable. Furthermore, just two customers accounted for 86% of the company's revenue in 2025, the very definition of customer concentration risk. As Cerebras gains more converts, that risk should moderate, but it's worth noting nonetheless. As such, investors interested in acquiring a stake should make it a small part of a well-balanced portfolio. When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 994%* -- a market-crushing outperformance compared to 199% for the S&P 500. Danny Vena, CPA has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy.
Cerebras Stock: Trying To Disrupt Nvidia's Inference Monopoly (Pending:CBRS)
Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More " New Details On Cerebras Systems Ahead Of Its IPO I wrote about Cerebras Systems (CBRS) in October 2024, when we first saw the initial IPO details, and back then, I called the offering's details quite Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information. He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. CBRS postponed its IPO due to stagnating equity capital markets following 2022, which slowed new issuances across the sector. Cerebras uses wafer-scale processors that reduce latency and improve efficiency, offering an alternative architecture to traditional GPU clusters used by Nvidia. Its transition to an AI cloud provider could unlock recurring revenue streams and higher margins, significantly enhancing long-term profitability.
Cerebras Systems Targets IPO After Posting $510 Million in 2025 Revenue
Microsoft Corporation is the world's leader in the design, development and marketing of operating systems and software programs for PC's and servers. The group also builds and sells computer equipment. Net sales break down by activity as follows: - sale of operating systems and application development tools (42.9%): primarily for servers (Azure, SQL Server, Windows Server, Visual Studio, System Center, GitHub, etc.) and (Windows); - development of cloud-based software applications (37.7%): programs for productivity (Microsoft 365; Word, Excel, PowerPoint, Outlook, OneNote, Publisher and Access), integrated management and customer relationship management (Dynamics 365), online file sharing and management (OneDrive), and unified and collaborative communications (Microsoft Teams); - other (19.4%): primarily sale of software licenses (Windows), tablets (Microsoft Surface), video game consoles and software (Xbox), computer accessories, etc. The United States accounts for 51.3% of net sales.
Cerebras files for IPO with $510M revenue and a $23B valuation -- TFN
In 2018, Elon Musk tried to buy Cerebras Systems, but the founders, Andrew Feldman, Gary Lauterbach, Michael James, Sean Lie, and Jean-Philippe Fricker, said no. Back then, some saw this as a bold move, while others thought it was risky. The company had already spent three years and a lot of money on a chip design that most in the industry thought couldn't be built. Last week, Cerebras filed to go public on Nasdaq under the ticker CBRS. Now, according to CNBC, the founders' decision seems much more justified. According to its IPO filing, Cerebras reported $510 million in revenue for 2025, a 76% increase from the previous year. The company also went from a $481 million net loss to $87.9 million in net income. Morgan Stanley, Citigroup, Barclays, and UBS are leading the underwriting, while Mizuho and TD Cowen are bookrunners. The share price and offering size have not yet been announced. The company has also shared that it has a $24.6 billion backlog in remaining performance obligations as of December 31. Most AI computing today uses clusters of thousands of small GPU chips, each about the size of a fingernail, connected in large, power-hungry data centres. Now that AI inference is becoming more important than training, these limitations are getting harder and more costly to overlook. Cerebras chose a completely different approach. Its Wafer-Scale Engine is the first and only commercial processor to use the entire wafer. It measures 46,225 square millimetres, contains 4 trillion transistors, and 900,000 cores. Putting everything on a single surface eliminates the need for complex interconnections between chips. The result is a memory bandwidth 7,000 times that of a standard GPU and inference speeds that have drawn customers ranging from Argonne National Laboratory to GlaxoSmithKline. The current CS-3 system integrates the WSE with power, cooling, and networking into a single deployable unit. NVIDIA leads the competition, with its GPUs powering most of the world's AI infrastructure and a market value of over $4.5 trillion in early 2026. AMD and Broadcom are strong competitors, and more startups focused on inference are entering the field. Cerebras' situation is unusual because AMD, a direct competitor, joined its most recent funding round. When a rival invests in your Series H, it can mean they want to protect themselves from disruption, believe in the technology, or both. That Series H, closed in February 2026 and led by Tiger Global, valued Cerebras at $23 billion, nearly triple the $8.1 billion valuation it carried just five months earlier after its Series G. Benchmark Capital, which has backed the company since its $27 million Series A in 2016, raised a dedicated $225 million SPV to increase its position. Total private capital raised across all rounds now stands at approximately $2.8 billion. This IPO comes as many AI companies are testing whether the public market is interested in the infrastructure behind the AI boom, with Cerebras being the first to file. The response to its debut will likely influence how future AI hardware IPOs are received.
Cerebras' Second Shot at Glory: Wafer Giant Files for IPO Amid OpenAI's Massive Bet
Cerebras Systems has filed paperwork to go public. Again. The AI chip maker, known for its dinner-plate-sized processors, disclosed its S-1 with the SEC on April 17, 2026, targeting Nasdaq under the ticker CBRS. This comes after pulling a prior filing in 2025, just days following a $1.1 billion fundraise that pegged its value at $8 billion. Back then, regulatory snags over UAE investor G42 stalled progress. Now, with CFIUS cleared and deals like a multibillion-dollar pact with OpenAI, Cerebras eyes a mid-May debut. Revenue hit $510 million in 2025. That's up 76% from $290.3 million the year before. Net income swung to $87.9 million -- or $237.8 million excluding one-offs -- from a $484.8 million loss. But strip away a $363 million accounting gain from restructuring a G42 deal, and operating losses widened to $75.7 million non-GAAP. Boom times, yet cash burn persists. A $24.6 billion backlog looms large, fueled by that OpenAI commitment for 750 megawatts through 2028, with options to nearly 3 gigawatts by 2030. OpenAI loaned $1 billion and snagged warrants for 33 million shares. Customers? Still UAE-heavy. Mohamed bin Zayed University of Artificial Intelligence delivered 62% of 2025 revenue; G42 chipped in 24%. Down from 87% reliance earlier. Diversity helps. Amazon Web Services integrated Cerebras inference chips into its data centers last year, per Wall Street Journal. And CEO Andrew Feldman didn't mince words on Nvidia rivalry: "Obviously, [Nvidia] didn't want to lose the fast inference business at OpenAI, and we took that from them," he told Yahoo Finance. From Wafer Dreams to Data Center Reality Cerebras' edge? The Wafer-Scale Engine, or WSE-3. At 58 times larger than Nvidia's B200, it packs 4 trillion transistors, 900,000 AI cores, and memory bandwidth Nvidia clusters can't match -- 2,625 times more, claims the company. No NVLink traffic jams. Just one massive die. Inference speeds? Up to 15x faster on open-source models versus GPUs. The CS-3 systems housing these beasts power sovereign AI for nations wary of Big Tech clouds. Six North American data centers hum already. But history matters. Founded in 2015, Cerebras raised over $800 million privately, hitting $23 billion valuation in February 2026's Series H. First S-1 in September 2024 exposed early losses: $127 million on $78.7 million revenue, per SEC filings. CFIUS scrutiny over G42 -- a Microsoft-backed UAE firm -- derailed that. Delays piled on through 2025 amid Trump-era reviews. Then, September's $1.1B round let them withdraw and refresh numbers, as CEO Feldman posted on LinkedIn: the prior prospectus was "stale and no longer reflected the current state of our business." Financials evolved. Hardware sales: $358 million in 2025, up from $212 million. Cloud services added $152 million. Gross margins? Improving, though discounts to G42 bit early. Remaining performance obligations signal confidence -- 15% expected in 2026-2027. Morgan Stanley leads underwriters, with Citi, Barclays, UBS in tow. A $125 million credit line expands post-IPO. Path forward includes "disaggregated inference." Cerebras hardware as decode engine; others handle prefill. Hybrid play. No full GPU replacement. Smart, given Nvidia's 80% market grip. And competition sharpens. OpenAI's deal doubled to $20 billion over three years, per X posts from insiders like @deepakmagrawal. "The AI compute race is no longer just about Nvidia." Cerebras chips now in AWS. Inference.cerebras.ai draws devs for speed. Profit Mirage or Turning Point? That 2025 profit? Paper-driven. Core ops lost money. Losses from operations: $146 million. R&D devours cash -- biggest opex chunk. Scaling six data centers, more chips, sovereign deals costs plenty. UAE concentration risks persist. One client falters, trouble brews. Yet momentum builds. CNBC notes the filing after scrapping last year's plans. Reuters calls it a Nvidia rival tapping listings revival. WSJ highlights OpenAI, Amazon pacts post-cancellation. BusinessWire's presser confirms S-1 details (link). PitchBook dissects the backlog's OpenAI tilt (here). Investors eye execution. Can Cerebras deliver $24.6 billion backlog without UAE over-reliance? Turn operating losses? Match private $23 billion valuation publicly? Risks abound. Chip wars rage. Nvidia's moat deepens. But Cerebras bets on inference hunger -- where speed trumps all. Mid-May IPO looms. Public markets test if wafer-scale dreams scale.
