The highly anticipated Cerebras Systems IPO is facing another setback as its national security review continues to stall. This is further clouding the AI chipmaker’s path to going public. Despite initial hopes that a change in administration would smooth the process, the review is still dragging on. Highlighting the growing scrutiny over foreign investments in U.S. tech companies.
Cerebras first filed to go public back in September 2024, banking on strong investor interest in the booming AI hardware sector. Insiders believed the incoming Trump administration might help fast-track the review. However, according to a report by Reuters, that optimism has faded as key government roles remain unfilled. Particularly the assistant Treasury secretary for investment security — a crucial position responsible for overseeing the Committee on Foreign Investment in the United States (CFIUS).
The CFIUS review was triggered by a significant $335 million investment from G42. An Abu Dhabi-based AI holding firm previously linked to Chinese tech giant Huawei. Given the sensitive nature of AI chipmaking and potential ties to foreign entities, the deal raised immediate national security concerns.
As a result, Cerebras has been stuck in regulatory limbo, with no clear timeline on when the IPO might proceed. The company declined to comment on the situation, signaling just how delicate the matter has become.
The delay reflects broader geopolitical tensions surrounding AI and semiconductor technologies. Especially as governments around the world race to secure their own domestic supply chains. For Cerebras Systems, known for building some of the world’s most powerful AI chips, the prolonged review is an unwelcome obstacle just as demand for AI computing surges.
While Cerebras Systems IPO plans remain on hold, the outcome of this review could set a precedent for how future foreign-backed AI and chip companies navigate the U.S. public markets.
