Cerebras Systems Inc. has announced that it has resolved “all open issues” with the Committee on Foreign Investment in the US (CFIUS), marking a significant step forward for the chip startup as it prepares for its initial public offering (IPO). This development is particularly crucial as Cerebras aims to solidify its position in the competitive chip market.

In September, Cerebras disclosed that it had filed a voluntary notice with CFIUS regarding its partnership with Group 42 Holding Ltd., an artificial intelligence firm based in Abu Dhabi that accounts for over 80% of Cerebras’ revenue. G42 is also looking to purchase more than 22 million shares in Cerebras. As part of a revised agreement, Cerebras indicated that G42 will only be entitled to acquire non-voting shares, which alleviated the need for further CFIUS scrutiny.

The national security review had previously created uncertainty surrounding Cerebras’ IPO plans for several months. This situation served as an early test for the Trump administration’s approach to foreign investments in US AI companies, especially during a period when the government is focused on maintaining US technological supremacy. Cerebras highlighted that its partnership with G42 exemplifies the benefits of international collaboration in advanced AI technology, emphasizing a mutual commitment to innovation and growth.

A representative from the US Treasury did not respond immediately to requests for comment regarding this matter. The Biden administration has implemented stricter measures on the transfer of AI capabilities to specific regions, closely monitoring investments from Middle Eastern wealth funds due to concerns about their potential connections to China.

In March, Sheikh Tahnoon Bin Zayed Al Nahyan, the UAE’s national security adviser, visited the White House and affirmed that the Gulf State plans to invest $1.4 trillion in the US over the next decade. Cerebras stated that its collaboration with G42 has resulted in the establishment of data centers in California, Texas, and Minnesota.

Cerebras is one of the few AI firms preparing for an IPO, positioning itself to compete against Nvidia Corp., which currently dominates the chip market essential for AI computing infrastructure. The startup’s unique approach focuses on manufacturing large chips that facilitate data processing for AI software development.

While the specific terms of Cerebras’ public offering have not yet been disclosed, reports suggest that the listing could raise up to $1 billion, valuing the company between $7 billion and $8 billion. Notably, G42 contributed 87% of Cerebras’ sales during the six months ending June 30, according to the company’s IPO filings, indicating a significant reliance on G42 for revenue, especially if the UAE firm wishes to utilize Cerebras’ technology outside the US, which would require authorization from the Department of Commerce’s Bureau of Industry and Security.