How to Invest in Cerebras Systems Stock in 2024
Cerebras Systems is an innovative artificial intelligence (AI) company making waves in the tech industry with its groundbreaking approach to AI computing. Known for developing the world’s largest computer chip designed to accelerate AI computations, Cerebras is positioning itself as a potential competitor to industry giant Nvidia. The company’s $100 million supercomputer, operational since 2023, offers a cloud-based, pay-per-use alternative to traditional hardware purchases, making advanced AI computing more accessible to smaller organizations and researchers.
How to Buy Cerebras Systems Stock
Cerebras Systems is currently a private company, meaning it does not trade on public stock exchanges and lacks a stock symbol. However, accredited investors can purchase shares through Hiive, a secondary marketplace for private company investments.
Accreditation Requirements
To qualify as an accredited investor, you must meet one of the following criteria:
- An individual annual income of $200,000 or a joint income of $300,000.
- A net worth exceeding $1,000,000, excluding the primary residence.
- Status as a qualifying financial professional.
On Hiive, investors can browse 70 unique listings of Cerebras stock, negotiate prices, or accept asking prices set by sellers, who may be current or former employees, venture capitalists, or angel investors.
Can Retail Investors Buy Cerebras Systems Stock?
Retail investors cannot currently purchase Cerebras Systems stock directly. However, they can gain indirect exposure by investing in companies partnered with Cerebras, such as Qualcomm (QCOM) and Taiwan Semiconductor (TSM). These investments offer limited exposure to Cerebras’ potential success but are not direct investments in the company.
Cerebras Systems’ Growth and Market Position
Cerebras has formed significant partnerships with the U.S. and Abu Dhabi governments, UAE’s G42, Mayo Clinic, and AstraZeneca, among others. These collaborations, along with its innovative supercomputer approach, position Cerebras as a notable player in the AI computing space.
Funding and Valuation
In November 2021, Cerebras Systems raised $250 million at a valuation of $4 billion, bringing its total funding to over $700 million. Given its recent partnerships and technological advancements, it’s likely that the company’s value has increased since then.
Founders and Company Background
Cerebras Systems was founded in 2015 by Andrew Feldman (CEO), Gary Lauterback (co-CTO), Michael James (Chief Architect, Advanced Technologies), Sean Lie (co-CTO), and Jean-Philippe Fricker (Chief System Architect). All founders previously worked together at SeaMicro, a computer server company sold to AMD in 2012 for $334 million.
FAQs About Investing in Cerebras Systems
What is Cerebras Systems?
Cerebras Systems is an AI company known for developing the world’s largest computer chip, designed to accelerate AI computations and offer cloud-based supercomputing services.
How can I invest in Cerebras Systems before it goes public?
Accredited investors can purchase shares through Hiive, a platform for private company investments.
When is Cerebras Systems expected to go public?
Cerebras has selected Citigroup to lead its IPO and is targeting the second half of 2024 as the earliest potential date for going public.
What are the risks of investing in private companies like Cerebras Systems?
Investing in private companies involves risks such as limited liquidity, market volatility, and the uncertainty of an IPO timeline.
Who are the major partners of Cerebras Systems?
Major partners include the U.S. and Abu Dhabi governments, UAE’s G42, Mayo Clinic, AstraZeneca, Qualcomm, and Taiwan Semiconductor.