Episode 185: Today, Ann dives into the demand for AI through the lens of the upcoming Cerebras IPO – on track to raise up to $4.8 billion at a valuation just shy of $50 billion. Then, we unpack earnings from Birkenstock and Alibaba – why one stock is falling while the other is on the rise. Also: Rent the Runway loses its founder and geothermal company Fervo Energy gets a warm welcome to the public market. Finally, we take a question from the audience and dive into Corning – and why its latest AI partnership may not be so out of the blue. Visit Schwab.com/FinancialDecoder www.brewmarkets.com Subscribe to the Brew Markets newsletter: https://www.morningbrew.com/brew-mark... Follow Brew Markets on social: Instagram: instagram.com/brewmarkets TikTok: tiktok.com/@brewmarkets X: x.com/brewmarkets Follow Ann Berry on social: Instagram: instagram.com/annberry_nyc X: x.com/AnnBerry_NYC Listen to Brew Markets Here: swap.fm/l/9Qk4z73Z2nEwFiCB4qee Watch Brew Markets Here:⁠ https://www.youtube.com/@BrewMarkets Stocks mentioned: $RENT $BIRK $BABA $FRVO $GLW $NVDA The content shared on this podcast is for informational and entertainment purposes only and should not be considered financial, legal, or investment advice. Brew Markets, Morning Brew and their hosts are not licensed financial advisors. Listeners should conduct their own research and consult with qualified professionals before making any financial decisions or investments. The views expressed are those of the hosts and guests and do not necessarily reflect the views of Morning Brew or its affiliates. This podcast may include paid endorsements or sponsorships Learn more about your ad choices. Visit megaphone.fm/adchoices

IPOs to Watch This Week & Corning’s AI Pivot

Brew Markets

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**Podcast:** Brew Markets

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This episode is brought to you by Charles Schwab. Timing the market, fighting inflation, managing risk, financial decisions can be tricky. Investing isn't just math, it's psychology. Your neurons are playing favorites and the market doesn't care. Financial Decoder, an original podcast from Charles Schwab, can help. Join host Mark Reapy as he breaks down practical strategies to help overcome the mental traps that may affect your investing decisions. Listen at schwab.com slash financial decoder.

Alibaba, the Amazon of China. Its core profits are down 84%. So why are shares trading higher? We break it down. Corning, now at the heart of the hyperscaler boom, we answer one listener's question on how the OG glassmaker got there. And in another sign of insatiable AI demand, one company set to go public at nearly 100 times what it made top line last year. For Wednesday, May 13th, it's Brew Markets Daily and I'm Anne Berry.

More market details to come. But first, meet Cerebras, touted to be on the verge of the hottest IPO so far this year, with the AI chipmaker on track to raise up to $4.8 billion and add a valuation of close to $50 billion. That's after its IPO order book closed roughly 20 times over subscribed today. Well, that huge demand for Cerebras shares shows just how much appetite the market has for all things AI right now.

It designs specialized AI chips built around its wafer scale engine, a processor that packs more than 4 trillion transistors, 4 trillion, onto a single piece of silicon. And the company's value proposition is providing fast and cheap inference. That's the computing required to run AI models as opposed to train them. Faster and cheaper even than NVIDIA's GPUs, which still dominate both sides of the market. Of course, today, I couldn't help myself.

I nerded out by going into the Cerebras IPO prospectus on the SEC website, Edgar, to see what's up. I've got to tell you, the vital statistics were pretty eye-opening because for 2025, the company had operating losses and hit just over $500 million in revenue. It's a lot of revenue, but it does mean that Cerebras would be valued out of the gate at nearly 100 times trailing sales.

And there's real concentration in those sales, a factor that led Cerebras to cancel a prior IPO attempt in 2024. And in 2025, just two entities, both affiliated with the United Arab Emirates, accounted for 86% of total revenue. And the company's outlook for diversification? Well, it's OpenAI. In January, the company announced that Cerebras would add 750 megawatts of ultra-low latency AI compute to OpenAI's platform.

That's in a partnership through 2028, one estimated to translate into about $20 billion of spend with Cerebras. And OpenAI features heavily in this company's prospectus, by the way, from a full-page quotation from Sam Altman in a very, very large font, to a billion-dollar loan provided by the maker of ChatGPT, to a large warrant pa...

IPOs to Watch This Week & Corning’s AI Pivot

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

IPOs to Watch This Week & Corning’s AI Pivot

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.