In a move that could rewrite the rules of tech valuation, Cerebras Systems is gearing up for an initial public offering (IPO) that could break records. The company, which specializes in AI-specific chips, plans to sell 28 million shares at $115 to $125 each, potentially raising over $3.5 billion and giving it a market capitalization of around $26.6 billion. This would make it the biggest tech IPO so far this year.

For OpenAI, Cerebras’ primary customer, the move signals an even deeper integration between AI giants. Back in February, OpenAI loaned Cerebras $1 billion, providing a major financial boost. The relationship could prove pivotal, as the IPO might bring significant gains to both parties, should it go ahead at or above expectations.

The long list of investors in Cerebras includes tech luminaries like Sam Altman, Ilya Sutskever, and Adam D’Angelo, alongside venture capital firms such as Fidelity and Alpha Wave. This diverse shareholder base underscores the industry’s growing confidence in the future of AI-specific hardware.

However, the IPO comes with a twist. In 2024, Cerebras was poised to go public but faced delays due to regulatory hurdles, particularly over an investment from G42, an Abu Dhabi-based cloud provider. The company’s current path may yet have its own set of challenges, given the massive orders already queued up for the shares.

All in, Cerebras’ successful IPO could signal a new era where AI and hardware are more tightly integrated, potentially pushing the boundaries of what’s possible with artificial intelligence.