'Nvidia Competitor' Cerebras listed with a market cap of 84 trillion won

'Nvidia Competitor' Cerebras listed with a market cap of 84 trillion won

As demand surged, the number and price of public offering shares were raised... 8.3 trillion won raised

Cerebras Systems (hereinafter Cerebras), an artificial intelligence (AI) chip startup considered a rival to Nvidia, has set its initial public offering (IPO) price at $185 per share.

Cerebras announced in a statement on the 13th (local time) that it would issue 30 million shares of Class A common stock.

Accordingly, the public offering amount was confirmed at $5.55 billion (approximately 8.3 trillion won). Based on the offering price, the market capitalization is $56.4 billion (approximately 84 trillion won), making it the largest IPO this year.

Initially, Cerebras planned to issue 28 million shares at a price range of '$115 to $125' per share, but as orders surged to 20 times the planned volume, the number and price of public offering shares were increased. Cerebras added that it granted underwriters a 30-day option to purchase up to an additional 4.5 million shares at the offering price.

Cerebras will begin trading on Nasdaq from the 14th.

Headquartered in Sunnyvale, California, USA, Cerebras manufactures semiconductors specialized in running high-performance AI models in a market dominated by Nvidia. It is a startup that boasts Wafer-Scale Engine (WSE) technology, which turns an entire wafer into a single AI chip.

This chip is evaluated as being more suitable for 'inference' operations, where AI models respond to user queries, than for graphics processing units (GPUs), which are mainly used for AI model training. As the AI industry shifts its focus from model training to model deployment, demand for Cerebras chips is rapidly increasing.

Cerebras recorded sales of $510 million last year.