Cerebras Systems, an American artificial intelligence chip developer, has received clearance from the Committee on Foreign Investment in the United States to sell shares to Group 42, Cerebras CEO and founder Andrew Feldman said. G42 is a Microsoft-backed AI company based in the United Arab Emirates.
“We thank @POTUS for making America the best place in the world to invest in cutting-edge #AI technology,” Feldman wrote in a LinkedIn post. He also thanked G42 and the UAE government for supporting AI businesses like Cerebras. “At Cerebras Systems we remain laser-focused on building state-of-the-art AI with the fastest AI systems on Earth,” the chief executive added.
The proposed deal will see G42 acquire $335 million worth of Cerebras shares by April 15. While the original agreement requires the UAE company to purchase voting shares, the most recent prospectus for its initial public offering reveals that the transaction involves the sale of non-voting shares.
The clearance opens the door for Cerebras to pursue its plans to go public. The AI chipmaker hoped to kick off its IPO bid in anticipation of receiving CFIUS clearance by October 2024, but it faced delays due to national security concerns related to G42’s connections with China. Mike Gallagher, a foreign policy adviser and Republican politician from Wisconsin, noted that G42 has since “reduced its investment exposure to Chinese companies.” In the meantime, Microsoft’s $1.5 billion investment has filled the gap left by the Chinese firms.