Benchmark Raises $225M Special Funds to Fuel Cerebras' $1B Surge at $23B Valuation in AI Chip Race

Benchmark Capital has launched two special funds totaling $225 million, dubbed Benchmark Infrastructure, to amplify its stake in AI powerhouse Cerebras Systems.

This move coincides with Cerebras securing a massive $1 billion funding round led by Tiger Global, boosting its valuation nearly threefold to $23 billion from $8.1 billion just six months ago.

Historic Partnership Ignites Growth

Benchmark first backed Cerebras by leading its $27 million Series A in 2016, demonstrating enduring confidence in the Sunnyvale-based innovator.

Over a decade old, Cerebras has evolved from startup to serious contender in the AI hardware arena, challenging giants with its bold engineering.

Wafer Scale Engine Revolutionizes AI

The company's flagship Wafer Scale Engine, spanning nearly an entire silicon wafer with 4 trillion transistors, powers unprecedented parallel AI processing.

This technology promises over 20 times faster AI inference than traditional GPU clusters by eliminating data bottlenecks between chips.

Strategic Alliances Drive Momentum

A multi-year pact with OpenAI valued at more than $10 billion will deliver 750 megawatts of compute power through 2028, slashing response times for complex queries.

Resolving past dependencies, like G42 accounting for 87% of revenue in early 2024, has cleared hurdles including national security reviews.

IPO Horizon and AI Future

Cerebras eyes an initial public offering in Q2 2026, capitalizing on surging demand for AI infrastructure.

Benchmark's outsized commitment underscores the transformative potential of Cerebras in outpacing Nvidia-dominated markets.

This influx positions Cerebras to scale production and innovation, reshaping the competitive landscape of AI acceleration.