$60B AI chip darling Cerebras almost died early on, burning $8M a month (techcrunch.com)

Cerebras Systems, a company specializing in AI chips, successfully went public with a valuation of around $60 billion, thanks to its innovative approach to semiconductor design. However, just four years ago, the company was on the brink of collapse, burning through $8 million a month while tackling a monumental engineering challenge: creating a massive chip by using an entire wafer rather than traditional smaller transistors. This ambitious endeavor involved various complex issues, particularly with packaging—the process of integrating the chip into usable hardware, which had not been effectively accomplished in the industry. The breakthrough came in July 2019 when the Cerebras team managed to overcome the obstacles around cooling and data transfer, leading to the successful operation of their chip. This achievement not only solidified Cerebras' position in the market but also established partnerships with major players like OpenAI, which has since loaned the company $1 billion and restricted sales to certain competitors. The story of Cerebras serves as a testament to innovation in AI hardware, illustrating the risks and rewards associated with pioneering cutting-edge technology in a challenging landscape.