Cerebras IPO Delayed as Treasury Department Reviews Relationship with G42
Key Takeaways
- Cerebras filed to list on the Nasdaq in September.
- However, the Treasury Department has still not cleared the IPO to go ahead.
- Ongoing concerns over Cerebras’ relationship with G42 are behind the delay.
Six months after Cerebras Systems filed its Initial Public Offering (IPO) paperwork with the Securities and Exchange Commission (SEC), the Treasury Department has yet to complete a crucial national security review.
The Treasury’s Committee on Foreign Investment in the United States (CFIUS) is reportedly probing the company’s relationship with G42, an Emirati AI firm with links to China.
G42 Cerebras Investment
G42 initially became involved with Cerebras in 2021, investing around $40 million in the startup’s Series F funding round.
From that point onward, G42 also became Cerebras’ largest customer, contracting the firm to help it build a series of AI supercomputers.
As part of its IPO application, Cerebras revealed that in 2023, G42 accounted for 83% of its annual revenue.
The two companies’ partnership was further cemented in 2024 when G42 moved to significantly increase its stake.
As revealed by Cerebras’ IPO filing, G42 or its affiliates have agreed to purchase $335 million in additional shares by April 2025, which would raise the group’s overall ownership to over 5%.
National Security Concerns
According to Reuters , ongoing concerns about Cerebras’ relationship with G42 are behind CFIUS’s delayed approval. It is unusual for an IPO not to be cleared within 12 weeks of filing the necessary paperwork.
For years, American security analysts have raised concerns about G42’s close links to China.
In the past, the Abu Dhabi-based AI company has worked with sanctioned Chinese enterprises like BGI Group and Huawei.
Meanwhile, U.S. intelligence agencies have reportedly warned that G42 may be diverting U.S. technology to Chinese companies in breach of American export restrictions.
Impact of China Sanctions
As a major developer of AI chips, Cerebras is heavily bound by U.S. sanctions designed to curb China’s access to advanced semiconductors. Given G42’s ties to Chinese partners, this creates challenges for Cerebras’ proposed IPO.
Under President Donald Trump, CFIUS has been instructed to streamline its review process to accelerate investment.
However, when it comes to foreign investments that could be linked to China, particularly in the technology sector, the administration has requested that the Treasury actually intensify its vetting process.
