U.S. chipmaker Cerebras Systems has priced its initial public offering (IPO) at $185 U.S. a share, above the expected range.
Cerebras, which makes microchips that run artificial intelligence (A.I.) workloads, is seeing soaring demand for its IPO, which is taking place in New York on May 14.
The IPO is expected to raise $5.55 billion U.S. in capital for Cerebras, which sold 30 million shares.
Cerebras’ market debut is one of the largest technology IPOs this year. At the IPO price, Cerebras has a market capitalization of $56.4 billion U.S.
Founded in 2016 and based in Silicon Valley, Cerebras will trade on the Nasdaq (NDAQ) exchange under the ticker symbol “CBRS.”
The company announced in January of this year that it had signed a deal with OpenAI worth $20 billion U.S. for 750 megawatts of computing capacity.
Cerebras claims its Wafer Scale Engine 3 microchip offers speeds and price advantages over graphics processing units (GPUs) made by rivals such as Nvidia (NVDA).
Cerebras had initially priced its IPO in a range of $115 U.S. to $125 U.S. per share but raised it due to surging demand from investors, the company said.
In 2017, OpenAI considered merging with Cerebras, viewing the chip company as a leader in the pursuit of artificial general intelligence, or AGI.
The IPO’s lead underwriters include Wall Street banks Morgan Stanley (MS) and Citigroup (C).
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