Cerebras Systems Defies IPO Delays with Massive $1.1B Funding Round - What's Next for This AI Chip Giant?

Nvidia Rival Cerebras Systems Raises $1.1 Billion in Series G Funding

Cerebras Systems, a key competitor to Nvidia in the AI hardware space, has secured a massive $1.1 billion Series G round despite previously planning to go public. This funding values the company at an impressive $8.1 billion.

Key Investors and Company Background

The round was co-led by Fidelity and Atreides Management, with participation from Tiger Global, Valor Equity Partners, and 1789 Capital, among others. Founded in 2015, Cerebras specializes in AI chips, hardware systems, and cloud services, and has now raised nearly $2 billion over its 10-year history. Its last funding was a $250 million Series F in 2021, which valued the company at over $4 billion.

Explosive Growth Driven by AI Inference Services

According to Andrew Feldman, co-founder and CEO, this funding follows a year of explosive growth, largely fueled by the company's AI inference services launched in August 2024. Feldman noted, "By the second quarter of 2024, we came to believe that we had crossed a tipping point in which the AI that had been made was becoming useful, and that means you would see an explosion of demand for inference. We reallocated some resources, we hired more people, and in August, we launched our inference cloud, and the demand has been overwhelming."

Expansion Plans and Data Center Growth

To support this demand, Cerebras has opened five new data centers in 2025 in locations such as Dallas, Oklahoma City, and Santa Clara, with more planned in Montreal and Europe. The new funding will primarily be used to expand its data center footprint and U.S. manufacturing hubs, along with undisclosed technological advancements.

IPO Delays and Future Plans

Cerebras initially filed for an IPO in September 2024 but faced regulatory delays due to a review by the Committee on Foreign Investment in the United States (CFIUS). This was triggered by a $335 million investment from G42, an Abu Dhabi-based cloud and AI company. Further delays occurred in early 2025 due to unfilled positions in CFIUS at the start of President Donald Trump's term.

Despite these setbacks, Feldman affirmed that the company still plans to go public, following a common path for late-stage startups of raising large rounds from public investors before listing. He stated, "We chose a small number of leaders who would help us, not just in this round, but in the future. Companies that are leaders in late-stage private [fundraising], but predominantly do public. And you know, it's our aspiration to be a public company."