Cerebras Systems Inc - Class A

After following Cerebras Systems Inc. for years and meeting management several times, we participated in the company’s IPO during the quarter. Cerebras is a semiconductor company focused on fast AI inference, producing fast tokens. As inference evolves, many internal tokens are generated for every external token, shifting the bottleneck from raw compute to AI-factory throughput. Cerebras’ Wafer-Scale Engine (WSE) is designed to keep calculations on-wafer, enabling much higher bandwidth and faster token generation. We believe Cerebras’ moat is durable because wafer-scale computing is difficult to replicate, and as agentic AI adoption grows, its solution should become more valuable to customers.

After following Cerebras Systems Inc. for years and participating in the company’s IPO during the quarter, we believe it is well-positioned in the fast AI inference market. Cerebras' Wafer-Scale Engine (WSE) is designed to produce fast tokens, which is crucial as AI inference evolves. The WSE-3 is significantly larger than leading GPU chips and can deliver inference up to 15 times faster. We see a durable competitive advantage due to the complexity of wafer-scale computing, which Cerebras has been developing for nearly a decade. As demand for agentic AI grows, we expect Cerebras' solutions to become increasingly valuable.

Cerebras Systems has demonstrated significant market traction, particularly with its IPO perpetuals, which achieved over $30 million in daily volume and maintained price accuracy within 3% of the actual IPO price. This success highlights the company's strong position in the tokenized startup landscape, where it is recognized for clean price discovery and a self-terminating structure that resolves effectively into post-IPO perpetuals. The demand for Cerebras' offerings indicates a robust market interest and a competitive edge in the evolving AI and semiconductor sectors.

Cerebras Systems Inc (CBRS) is a wafer-scale chipmaker that is positioned to benefit from the ongoing AI infrastructure buildout. The company is part of a sector that has seen significant investment, and we believe its technology is critical for the future of data centers. Our investment reflects confidence in its growth potential as demand for AI capabilities continues to rise. We initiated our position in early April, and the shares have performed well, contributing positively to our portfolio's performance during the quarter.

Cerebras Systems Inc. is positioned to benefit from the ongoing demand for AI infrastructure, as the company is part of a sector experiencing significant growth. The manager highlights that AI inference applications are constrained by memory bandwidth, and as the demand for AI performance increases, the need for larger and faster memory will create a durable, multi-year demand tailwind. This positions Cerebras favorably within the evolving landscape of AI and semiconductors, suggesting strong potential for future growth.

Cerebras, an AI chipmaker positioning itself as a direct challenger to Nvidia, raised $6.4 billion in the quarter's second-largest IPO, a sign that public market appetite for this cycle extends beyond a single name. Cerebras builds chips purpose-built to run AI models faster than traditional GPUs, completing a $34.3 billion IPO this quarter. This positions the company in a critical infrastructure race that rewards speed and cost efficiency in serving AI models, as demand for AI compute continues to climb.