Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Equity Long-Short, Semiconductors

Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

Equity Capital Markets

Cerebras Systems / Equity Capital Markets

<ul><li>I’m not going to write about the technical side at all, as I expect Dylan Patel’s team at SemiAnalysis to do a much better job than I can do alone.</li><li>However, I want to note some of the funniest aspects because landmines are everywhere for this IPO. Of course, it’s driven by G42, but it’s much worse than you think. Here’s the <a href="https://www.sec.gov/Archives/edgar/data/2021728/000162828024041596/cerebras-sx1.htm" target="_blank" rel="noopener">prelim S-1</a>.</li><li>G42 is pretty much the only customer.</li></ul>

I’m not going to write about the technical side at all, as I expect Dylan Patel’s team at SemiAnalysis to do a much better job than I can do alone.However, I want to note some of the funniest aspects because landmines are everywhere for this IPO. Of course, it’s driven by G42, but it’s much worse than you think. Here’s the prelim S-1.G42 is pretty much the only customer.

Private Markets, Angel and Secondary Investing, Sacra

Sacra

Private Markets, Angel and Secondary Investing

Bringing transparency to private markets so investors, founders, and employees can build on conviction. Sacra delivers deeply researched insights on the private companies shaping tomorrow's markets. By surfacing the data, context, and operator perspective that are missing from private markets today, we help secondary buyers and sellers price equity accurately and unlock liquidity for the people building these businesses.

Private Capital Markets

Cerebras Systems / Private Capital Markets

<ul><li>Cerebras generated $250M of revenue in 2023, up 200% year-over-year, their growth accelerating with the rise in AI compute demand from big enterprises training models on their proprietary data.</li><li>Cerebras (2015) designed its Wafer-Scale Engine chip to vastly accelerate training on the compute-intensive BERT models used in scientific deep learning, finding product-market fit with national labs like Argonne and Livermore working on protein folding, climate prediction, and molecular dynamics.</li><li>With GPTs ascendant (vs BERT models), Cerebras and Groq are both repurposing their chips to move into the $150B and growing market of LLM and AI model training to take on Nvidia.</li></ul>

Cerebras generated $250M of revenue in 2023, up 200% year-over-year, their growth accelerating with the rise in AI compute demand from big enterprises training models on their proprietary data.Cerebras (2015) designed its Wafer-Scale Engine chip to vastly accelerate training on the compute-intensive BERT models used in scientific deep learning, finding product-market fit with national labs like Argonne and Livermore working on protein folding, climate prediction, and molecular dynamics.With GPTs ascendant (vs BERT models), Cerebras and Groq are both repurposing their chips to move into the $150B and growing market of LLM and AI model training to take on Nvidia.

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

Equity Bottom-Up

<ul>
<li>~$900 million supercomputer deal is off the charts compared to all previous deals</li>
<li>Without the deal, Cerebras would likely soon have run out of cash. With the deal, Cerebras is effectively working as a supercomputer contractor for G42 for the next several years</li>
<li>Three supercomputers to be built in the US, we suspect the remaining six to be built in the UAE. That's likely to raise some eyebrows. </li>
</ul>


~$900 million supercomputer deal is off the charts compared to all previous deals
Without the deal, Cerebras would likely soon have run out of cash. With the deal, Cerebras is effectively working as a supercomputer contractor for G42 for the next several years
Three supercomputers to be built in the US, we suspect the remaining six to be built in the UAE. That's likely to raise some eyebrows. 


Cerebras. G42 Deal Is A Life Saver. Or Is It?

<ul><li>The surprise consumer success of ChatGPT and the compute needed to support it put OpenAI on track to build the most capital-intensive startup in Silicon Valley history: so far, they’ve raised roughly $13.3B en route to $1B of (unprofitable) revenue in 2023.</li><li>This level of capital investment and cash burn necessitated a deep-pocketed, long-term partner like Microsoft—making it the single most influential stakeholder in OpenAI despite its minority ownership in the for-profit entity and lack of board seat in the controlling non-profit board.</li><li>Developers have raised $5B+ to build startups on top of OpenAI in 2023 alone, making an ecosystem bet on OpenAI as the latest platform shift—now, it’s even more clear that they need to design for optionality between OpenAI and competitors.</li></ul>

The surprise consumer success of ChatGPT and the compute needed to support it put OpenAI on track to build the most capital-intensive startup in Silicon Valley history: so far, they’ve raised roughly $13.3B en route to $1B of (unprofitable) revenue in 2023.This level of capital investment and cash burn necessitated a deep-pocketed, long-term partner like Microsoft—making it the single most influential stakeholder in OpenAI despite its minority ownership in the for-profit entity and lack of board seat in the controlling non-profit board.Developers have raised $5B+ to build startups on top of OpenAI in 2023 alone, making an ecosystem bet on OpenAI as the latest platform shift—now, it’s even more clear that they need to design for optionality between OpenAI and competitors.

United States

Cerebras Systems Inc. is an artificial intelligence infrastructure company. The Company designs and manufactures an AI compute platform comprised of proprietary systems and software that is delivered in standard racks for deployment in data centers up to supercomputer scale. Cerebras Systems serves customers in the United States.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Cerebras Systems (CBRS US)

The Cerebras IPO Stucture Sucks

I’m not going to write about the technical side at all, as I expect Dylan Patel’s team at SemiAnalysis to do a much better job than I can do...

Fabricated Knowledge

Cerebras At $250M

TL;DR: Sacra estimates that Cerebras generated $250M of revenue in 2023, up 200% year-over-year, their growth accelerating with the rise in AI...

Sacra

Cerebras. G42 Deal Is A Life Saver. Or Is It?

Three supercomputers to be built in the US, we suspect the remaining six to be built in the UAE. That's likely to raise some eyebrows.

William Keating

OpenAI Governance By Force

TL;DR: Two weeks ago, a power struggle at OpenAI laid bare the tangle of incentives behind the $86B organization’s complex corporate structure. The...

Sacra

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)