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Earlier this week, CNBC reported that artificial intelligence (AI) chip startup Cerebras Systems will soon list on the equity markets via an initial public offering (IPO). Cerebras competes with AI darling and market bellwether Nvidia (NVDA), whose graphics processing units (GPUs) are used to train and run generative AI models such as ChatGPT. According to Cerebras, its WSE-3 chip is armed with additional cores and memory compared to Nvidia’s H100 chip.
The AI megatrend has allowed Cerebras to increase its revenue to $66.6 million in the first six months of 2024, up from just $8.7 million in the year-ago period. While the company remains unprofitable, its net losses have narrowed to $66.6 million in the last two quarters, compared to a loss of $77.8 million last year. In 2023, it reported revenue of $78.7 million and a net loss of $127.2 million, while its sales stood at $69.8 million and a net loss of $50.9 million in Q2 of 2024. Cerebras explained that its operating expenses have risen in 2024 due to a widening employee base, which is, in turn, supporting its robust revenue growth.
