Artificial intelligence chipmaker Cerebras Systems scrapped plans for an IPO on Friday, days after the company announced a fresh fundraising round that sent its valuation up to $8 billion.
In a filing with the U.S. Securities and Exchange Commission (SEC), the Nvidia Corp. (NASDAQ:NVDA) competitor said it does not intend to conduct a proposed offering "at this time," but did not provide a reason.
Fresh Funding Propped Valuation Up To $8 Billion
Cerebras filed for an IPO just over a year ago, as it looked to take on AI chip giant Nvidia, in an effort to create chips for running generative AI models.
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Earlier this week, the Sunnyvale-based company said it raised $1.1 billion in new funding at a valuation of $8.1 billion. Investors included 1789 Capital, Alpha Wave, Altimeter Capital, Atreides Management, Benchmark, Fidelity, Tiger Global, and Valor Equity Partners.
The withdrawal also comes three days into a U.S. government shutdown that has left agencies like the SEC operating with a small staff.
Hopes To Take On Nvidia
In its IPO prospectus last year, Cerebras called itself a designer of chips for training and running AI models. The company has prioritized operating a cloud-based service that AI models can use to handle incoming queries.
High-valued AI companies are raising large sums of money in the private market, as investors bet on the explosive technology poised to transform industries and economies.
Databricks, a seller of data analytics software, recently said it was closing a $1 billion funding round with a valuation above $100 billion. Last week, OpenAI said that Nvidia plans to invest up to $100 billion in the company as it builds out data centers.
See also: Nvidia, Broadcom, Marvell Poised To Gain Big From $1.2 Trillion AI Spending Wave By 2030: Analyst
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