California-based artificial intelligence company Cerebras Systems is likely to postpone its initial public offering scheduled for mid-October due to delays associated with a Committee on Foreign Investment in the United States review of a minority investment from G42, a technology conglomerate based in the United Arab Emirates, Reuters reported Tuesday.
G42 has agreed to purchase $335 million worth of Cerebras’ stock by April 2025, a transaction that would give the UAE-based tech conglomerate a stake of more than 5 percent in the AI chip manufacturer.
In a revised filing with CFIUS, the companies noted that the shares of Cerebras stock that G42 plans to buy will be non-voting securities, a condition they claimed should not require a CFIUS review.
According to the report, Cerebras is developing AI data centers for G42, whose business accounted for 83 percent of the AI company’s total revenue in 2023.
Sources said Cerebras expects CFIUS to approve the G42 investment in 2024 and will proceed with its plans of going public as soon as it secures the CFIUS clearance.
