Abu Dhabi’s Influence Exposed in Cerebras IPO Filing

Cerebras, a technology company based in Sunnyvale, California, has made a significant announcement regarding its future plans. The company revealed its intention to list its shares on the Nasdaq Global Market under the ticker symbol CBRS. This move signifies a major step for Cerebras as it aims to expand its presence in the market and attract more investors.

The recent filing by Cerebras also shed light on its financial situation, showing that the company is currently operating at a loss. However, Cerebras has found a strong supporter in Group 42 Holding Ltd., a company based in Abu Dhabi. Group 42 has not only become a partner and investor in Cerebras but has also been instrumental in providing financial backing to the company. In November 2021, Group 42 acquired a 1 percent stake in Cerebras for approximately US$40 million, valuing Cerebras at around US$4 billion.

Despite facing losses, Cerebras has shown growth in its revenue figures. In the first half of 2024, the company reported a net loss of US$66.3 million on revenues of US$136.4 million. This is a significant improvement compared to the same period in 2023 when Cerebras recorded a net loss of US$77.7 million on sales of just US$8.7 million. Throughout 2023, Cerebras reported a net loss of US$127.2 million on revenues of US$78.7 million.

One of the key highlights from the filing is the close relationship between Cerebras and Group 42. In 2023, Group 42 accounted for approximately 83 percent of Cerebras' total revenue by purchasing US$65.1 million in goods and services from the company. Additionally, Group 42 has committed to pre-paying US$1.43 billion for goods and services by February 28, 2025, showcasing a strong partnership between the two entities.

Looking ahead, Cerebras is optimistic about its revenue prospects for 2024. The company anticipates a revenue rate of US$272.8 million for the year, with the potential to reach closer to US$350 million as sales continue to ramp up. While Cerebras is making strides in the market, it still lags behind industry giant Nvidia, which is projected to achieve a revenue run rate of US$120 billion in 2024.