US-based Cerebras Systems Inc. has resolved all issues with the Committee on Foreign Investment in the US (CFIUS), clearing a major hurdle for its IPO plans.

The review focused on Cerebras’ ties to Abu Dhabi-based AI firm Group 42 (G42), which accounted for over 80% of its revenue.

Initially, G42 was set to purchase more than 22 million shares, but the deal was modified to limit G42 to non-voting shares, avoiding further CFIUS scrutiny.

Former president Joe Biden administration has been tightening restrictions on AI investments, especially from the Middle East, due to national security concerns.

Cerebras’ partnership with G42 led to the establishment of data centers in California, Texas, and Minnesota. However, since G42 contributed 87% of Cerebras’ revenue in early 2024, a portion of its business remains subject to US government approval.

While terms haven’t been disclosed, reports suggest it could raise up to US$1 billion, valuing the company between US$7 billion and US$8 billion.