Cerebras CEO says chipmaker's 'aspiration' is to hold IPO in 2025
"That's our aspiration," Feldman told reporters on Thursday at the company's Supernova conference in San Francisco, after being asked if an IPO was likely this year.
Cerebras, which makes processors for artificial intelligence workloads, filed to go public in September but hasn't provided an update on the expected size or timing of an offering. In March, the company said it had obtained clearance from a U.S. committee to sell shares to Group 42, a Microsoft-backed AI company based in the UAE.
That clearance came from the Committee on Foreign Investment in the United States, or CFIUS, and marked a key step for Cerebras in its effort to go public. Cerebras competes with Nvidia, whose graphics processing units (GPUs) are the industry's choice for training and running AI models. More than 85% of Cerebras' revenue in the first half of 2024 came from Group 42.
The tech IPO market broadly has been in a drought since early 2022, when rising inflation and higher interest rates pushed investors out of risky assets. Cerebras appeared poised to be the first notable pure-play AI IPO after its filing, but then the came the delay. CoreWeave, which provides AI infrastructure, debuted in March and has seen its market value jump about 65% since its IPO.
The IPO market is showing signs of life, with trading app eToro hitting the Nasdaq this week and digital health provider Hinge Health scheduled to go out next week.
The Middle East is becoming a more critical market for AI development.
Nvidia CEO Jensen Huang was in Riyadh, Saudi Arabia this week along with other tech leaders and President Donald Trump for the Saudi-U.S. Investment Forum. Nvidia said at the event that it will sell more than 18,000 of its latest AI chips to Saudi company Humain.
Group 42 is also reportedly on tap to purchase 100,000 GPUs a year as part of a bigger agreement between the U.S. and UAE.
Feldman said at the roundtable with reporters that it's "important to be among the big dogs" and said, regarding the latest announcements, "You've got half the story. I can't share the other half."
In addition to Microsoft, Cerebras sells to Meta and IBM. Feldman said last year that the company would have another "hyperscaler" within the first half of 2025.
"We're close with another," he said on Thursday. "I think they haven't been the quickest to respond."
Earlier in the day, Cerebras announced the ability to run an open-source model from Alibaba on its chips at what it says is a lower price than what OpenAI's GPT-4.1 model charges, and at a higher speed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 minutes ago
- Yahoo
A More Affordable EV Won't Save Tesla
Key Points Tesla fell 5% after hours on its second-quarter earnings report. Some investors saw production of a new, more affordable vehicle as a positive sign. The company launched its robotaxi network in June. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) issued another disappointing earnings report on Tuesday. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service The leading electric vehicle (EV) maker finished the after-hours session down 5%, but the sell-off could have been worse. The company reported a decline in both sales and profit. Revenue was down 12% to $22.5 billion, and adjusted net income was down 23% to $1.39 billion, or $0.40 per share. Those numbers actually topped a muted revenue estimate at $22.13 billion, while the bottom-line consensus matched the results at $0.40. Tesla's problems have been well-documented at this point. CEO Elon Musk's turn in the political spotlight seemed to backfire after his relationship with President Donald Trump went sour. Due in part to Musk's involvement with politics, the brand has become unappealing in the eyes of some potential buyers, leading to a 16% decline in automotive revenue. Sales have plunged in Europe, and the company is losing ground to more affordable Chinese EVs. One seemingly bright spot Musk has a long history of overcoming weak results by telling investors what they want to hear on the earnings call, including making big promises about its robotaxi network and other initiatives in autonomy like its Optimus robot. He seemed to do that again on the latest earnings call, with some comments about the more affordable model he has long promised, which some have dubbed the Tesla Model 2. Musk said that the company started production of the vehicle in June and is ramping up production now. He added: "The goal with those products was not to negatively impact revenue or gross margin, but just to make a car that everyone loves and wants at a more affordable price." Musk has long argued that price competition was one of the biggest headwinds facing the company, but the brand crisis seems to have overshadowed that. By introducing its own lower-priced model, Tesla may end up cannibalizing its more expensive vehicles. Customers may be choosing between a more expensive Tesla and that lower-priced model, rather than another brand. The new vehicle is just a cheaper Model Y, rather than a brand-new vehicle model. The robotaxi initiative The biggest reason Tesla has maintained its premium valuation even as sales and profits have tumbled is that investors believe that Tesla's robotaxi network could go mainstream, fulfilling Musk's long-term vision. However, the robotaxi has gotten off to only a modest start after launching in June, and it seemed to get less attention on Tuesday's earnings call, though Musk reminded the audience: "As you can tell, autonomy is the story." Management said that robotaxis in Austin, Texas have topped 7,000 miles with no significant safety interventions. The company is aiming to launch the robotaxi in the San Francisco Bay Area next. Tesla needs growth in its core business Investors have bid up Tesla stock on hopes for its initiatives in robotaxis and more affordable vehicles, but the company needs to return to growth in selling EVs for the stock to be successful over the long term. The decline in EV sales is a reflection of a backlash against Tesla's brand. The company is also expected to struggle over the next few quarters due to the elimination of the EV tax credit and a change in other federal policies that supported EV adoption. The company also faces a $300 million effect from tariffs. Tesla could get back on track, especially if the robotaxi network takes off. But the current valuation in the stock leaves little room for upside if it does, especially given the persistent challenges in EV sales. While a more affordable vehicle might be a step in the right direction, it seems more likely to undercut demand for Tesla's more expensive vehicles, rather than competing with alternatives. Should you buy stock in Tesla right now? The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. A More Affordable EV Won't Save Tesla was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Skift
30 minutes ago
- Skift
Virgin Hotels Chicago Sold, Brooklyn's Hotel Indigo Sold
The DJIA rose 208 points on Friday, while the Nasdaq was up 50, the S&P 500 rose 25 points, and the 10-year treasury yield was down .02 to 4.39%. Lodging stocks were modestly higher. Virgin Hotels has sold its 250-room hotel in Chicago to a firm specializing in converting properties into timeshare investments. The hotel was sold for just under $77.4 million to an affiliate of Accelerated Assets, according to online property records. The sale comes at an apparent loss to Virgin Hotels and its development partner on the project, Lionstone Development. It's unclear what Accelerated Assets has planned for the Chicago hotel, but the firm's business model is to acquire, develop and finance properties where individuals buy into timeshare ownership stakes. JLL brokers represented the seller. For the second time in a month, Park Hotels & Resorts is putting a prominent Chicago property on the market for sale. Park
Yahoo
33 minutes ago
- Yahoo
Old Second Bancorp Inc (OSBC) Q2 2025 Earnings Call Highlights: Strong Net Income Amidst ...
Net Income: $21.8 million or $0.48 per diluted share. Return on Assets: 1.53%. Return on Average Tangible Common Equity: 15.29%. Tax Equivalent Efficiency Ratio: 54.54%. Tangible Equity Ratio: Increased by 49 basis points to 10.83% from last quarter. Common Equity Tier 1: 13.77%, up from 13.47% last quarter. Net Interest Margin: Decreased 3 basis points to 4.85% from last quarter. Total Cost of Deposits: 84 basis points for the second quarter. Loan-to-Deposit Ratio: 83.3% as of June 30. Total Loans Increase: $58.4 million from last quarter. Allowance for Credit Losses on Loans: Increased to $43 million or 1.08% of total loans. Noninterest Income: Wealth management fees increased by $324,000 or 11.7%; service charges on deposits increased by $280,000 or 11.2%. Noninterest Expense: $1.1 million less than the prior linked quarter. Average Deposits Increase: $51 million or 1.1% quarter-over-quarter. Share Repurchase: Approximately 327,000 shares repurchased in a privately negotiated transaction. Warning! GuruFocus has detected 5 Warning Sign with OSBC. Release Date: July 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Old Second Bancorp Inc (NASDAQ:OSBC) reported a strong net income of $21.8 million or $0.48 per diluted share for the second quarter. The company's return on average tangible common equity was 15.29%, indicating strong profitability. The tangible equity ratio increased by 49 basis points from the previous quarter, showing improved capital strength. Net interest income increased by $1.3 million or 2.1% compared to the prior quarter, reflecting strong margin performance. The acquisition of Evergreen Bank is expected to enhance profitability, with the bank performing ahead of initial expectations. Negative Points The second quarter earnings were impacted by a $531,000 MSR mark-to-market loss and an $810,000 charge in merger-related expenses. Net interest margin decreased by 3 basis points compared to the previous quarter. The loan-to-deposit ratio increased to 83.3%, indicating a higher reliance on deposits for loan funding. Noninterest expense increased by $5.5 million year-over-year, driven by higher salaries, employee benefits, and occupancy costs. The integration of Evergreen Bank is expected to result in a 'messy' next quarter with acquisition-related expenses. Q & A Highlights Q: What is the expected timing for the Evergreen Bank conversion, and what is the anticipated expense run rate? A: Bradley Adams, CFO and COO, stated that the conversion is expected to occur in the early to mid-fourth quarter. By the time they report the fourth quarter, the operating expenses should be closer to the final run rate, with the first quarter of the next year being relatively clean. Q: Can you provide more details about the owner-occupied CRE that was classified? A: James Eccher, CEO, explained that it stems from a large healthcare transaction in Oregon. They do not foresee a loss as they are in a strong collateral position with a 70% covered loan-to-value. The facility had restrictions from the state of Oregon, but these have been lifted, and cash flow is expected to improve. Q: How are commercial clients feeling about growth and loan closures given the current economic climate? A: James Eccher noted that commercial clients are handling tariff uncertainty well, though CapEx appetite has been muted. There is growth in leasing and commercial real estate, with a strong second-half pipeline expected, especially with the Evergreen Bank's powersports area. Q: What is the outlook for charge-offs, especially with the Evergreen acquisition? A: James Eccher mentioned that while powersports lending can have higher loss rates (1% to 1.5%), the portfolio's average coupon is around 9%, which balances the risk. Bradley Adams added that a 30 basis point charge-off rate going forward is reasonable. Q: How will the margin respond to a potential 25 basis point Fed rate cut? A: Bradley Adams expressed skepticism about a rate cut this year, noting that the margin is less sensitive to rate changes due to balance sheet movements. He estimated a 4 basis point impact per 25 basis point cut, but emphasized that internal adjustments are more influential. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
