ARM, SOFTBANK ATTEMPTED CEREBRAS BUYOUT BEFORE IPO

Arm Holdings and SoftBank Group attempted to acquire Cerebras Systems in the weeks leading up to the AI computing firm's expected initial public offering, people familiar with the matter said. The approach came at a critical juncture for Cerebras, as the company prepared for its public market debut. SoftBank, which is a majority owner of Cerebras, was involved in the acquisition discussion alongside Arm. Cerebras rejected the proposal and moved forward with its IPO strategy instead. The move signals the company's confidence in its standalone prospects and valuation in the public markets. Cerebras specializes in AI computing hardware and software, designing systems optimized for large-scale artificial intelligence workloads. The company has positioned itself as a competitor in the rapidly growing AI chip market, competing against established players and emerging startups. The attempted acquisition highlights the strategic interest in AI infrastructure companies as enterprises race to build out computing capacity for machine learning applications. Both Arm and SoftBank have significant stakes in the semiconductor and AI sectors. Arm, a chip design company owned by Japan's SoftBank, licenses its processor architecture to manufacturers worldwide. SoftBank has invested heavily in AI and semiconductor companies through its Vision Fund. Cerebras' decision to pursue an IPO rather than accept an acquisition offer suggests the company believes it can achieve greater value as a public company. Going public allows Cerebras to raise capital directly from markets and use its stock as currency for potential acquisitions or partnerships. The timing of the acquisition approach—described as coming in the 11th hour before the IPO—indicates the deal could have significantly altered the company's trajectory. Cerebras would have remained private under Arm and SoftBank ownership rather than accessing public markets and potentially commanding a higher valuation from investors.