Cerebras Systems has successfully cleared a U.S. government review concerning its connections with G42, an Abu Dhabi-based AI developer. This review was conducted by the Committee on Foreign Investment in the United States (CFIUS) and is expected to facilitate the California-based company’s long-anticipated initial public offering (IPO).

The CFIUS probe specifically examined the planned $335 million investment from G42, which is also Cerebras’ largest client, accounting for 87 percent of its earnings in the first half of 2024. Cerebras initiated the review in September by voluntarily disclosing G42’s investment, which represents approximately 5 percent of the company’s valuation.

Initially, both companies believed that the probe may not have been necessary, as G42 intended to acquire only non-voting shares. They later sought to withdraw their notice to CFIUS entirely. As the review took longer than expected, the new Trump administration faced delays in filling key agency positions, leaving Cerebras awaiting clearance until recently.

The resolution of this investigation was first reported by Bloomberg and occurred shortly after a meeting between Sheikh Tahnoon bin Zayed Al Nahyan, Abu Dhabi’s deputy ruler, and U.S. Treasury Secretary Scott Bessent. They discussed increasing the UAE’s access to advanced American semiconductors. Sheikh Tahnoon is also the chairman of G42, which had previously secured a significant $1.5 billion agreement with Microsoft to export American microchips to the UAE.

Mohammed Soliman, a senior fellow at the Middle East Institute, described the CFIUS decision as a “significant milestone” and a “vote of confidence” in the UAE regarding sensitive technologies. He noted that this outcome should streamline future deals involving similar technology partnerships.

This decision highlights how the Trump administration intends to strike a balance between restricting exports of sensitive dual-use technology to safeguard against potential threats from China while still fostering commercial relationships with emerging AI leaders like the UAE.