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Benchmark Doubles Down on Cerebras as AI Chipmaker Valuation Jumps to $23 Billion

Prime Highlight

  • Benchmark Capital invested at least $225 million in Cerebras Systems, reinforcing confidence in the AI chipmaker as an alternative to Nvidia.
  • The funding round highlights strong investor momentum behind AI infrastructure companies amid surging demand for advanced computing power.

Key Facts

  • Cerebras raised $1 billion at a $23 billion valuation, up sharply from $8.1 billion just six months earlier, with Tiger Global leading the round.
  • The company signed a multi-year deal worth over $10 billion to supply AI computing power to OpenAI through 2028 and is targeting a potential IPO in Q2 2026.

Background

Benchmark Capital has invested at least $225 million in AI chipmaker Cerebras Systems as part of the company’s recent $1 billion funding round, doubling down on one of its earliest bets as the startup’s valuation surged to $23 billion.

The new valuation marks a sharp rise from the $8.1 billion Cerebras reached just six months ago, reflecting growing investor confidence in alternatives to Nvidia’s AI chips. The funding round was led by Tiger Global, with Benchmark emerging as one of the largest contributors, according to a person familiar with the deal.

Benchmark first backed Cerebras in 2016, when it led the company’s $27 million Series A round. Because the venture firm typically keeps its funds below $450 million, it raised two special-purpose vehicles, both named “Benchmark Infrastructure,” specifically to support the Cerebras investment, regulatory filings show. Benchmark declined to comment on the funding.

Cerebras has gained attention for its unusually large processors. Its Wafer Scale Engine chip uses almost an entire silicon wafer and contains about four trillion transistors. The company says this design allows faster AI processing by reducing data movement between chips, a common bottleneck in traditional systems.

Momentum around the company has increased in recent months. Cerebras recently signed a multi-year deal worth more than $10 billion to supply computing power to OpenAI through 2028. The agreement aims to support faster responses for complex AI workloads.

The company’s road to public markets faced delays due to past ties with UAE-based firm G42, which once accounted for most of its revenue. After regulatory scrutiny and changes to its investor base, Cerebras is now preparing for a potential initial public offering in the second quarter of 2026, according to Reuters.

With fresh capital and major contracts in place, Cerebras is positioning itself as a serious player in the fast-growing AI infrastructure market.