Cerebras is playing in a huge market with insatiable investor demand, but its IPO prospectus is littered with red flags that complicate a potential debut.
AI chipmaker Cerebras is trying to be the first major venture-backed tech company to go public in the U.S. since Rubrik's IPO in April.
While its position in artificial intelligence infrastructure represents a major tail wind, Cerebras has challenges — most notably a hefty reliance on a single Middle Eastern customer — that may prove too weighty to overcome in the company's attempt to ride the Nvidia wave. Valued atfrom 2000 to 2006, said in an interview this week. "This would never have gotten through our underwriting committee.
But the most glaring red flag in Cerebras' filing relates to customer concentration. One company based in Abu Dhabi accounted for 87% of revenue in the first half of the year. The customer, U.S. lawmakers have expressed unease about G42's historic ties to China, through both past investments and customer relationships. G42 said in February that it hadin Chinese companies after Rep. Mike Gallagher, R-Wi, chairman of the Select Committee on the Chinese Communist Party, wrote ato Commerce Secretary Gina Raimondo about what he called G42's "extensive business relationships with Chinese military companies, state-owned entities and the PRC intelligence services.
The major Wall Street banks, for their part, are finding other ways to play in the burgeoning AI infrastructure market. Last week, Goldman Sachs, JPMorgan and Morgan Stanley were among a roster of banks that participated in issuing ato OpenAI. And on Friday, Nvidia GPU provider CoreWeave announced the close of a $650 million credit facility that was led by the top three tech banks.
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