Artificial intelligence chip-making company Cerebras Systems Inc.’s initial public offering has reportedly been delayed because the company has not yet obtained national security clearance to proceed from the Trump administration.

According to Reuters, referencing “five sources familiar with the matter,” Cerebras executives are waiting for the White House to fill key appointments and to wrap up the review by the Committee on Foreign Investment in the United States. CFIUS approval is needed for the IPO given an investment from Abu Dhabi-based cloud computing and AI company G42, a company that has previously had ties to China.

Cerebras produces specialized computer chips designed to handle AI and high-performance computing workloads. Last year, the company made headlines for claiming that its chips are not only more powerful than Nvidia Corp.’s graphics processing units but also more cost-effective.

Without getting into an argument about who has the better AI chip, the fact that Cerebras makes cutting-edge AI chips in the U.S. immediately makes it of national security interest and it’s that interest that has delayed the IPO so far.

The current delay arises because the White House has not yet appointed an assistant Treasury secretary for investment security, who oversees CFIUS. Reuters’ sources claim that though staff in CFIUS have the authority to approve the deal, the inclusion of G42 makes it politically risky — a risk they’re seemingly not willing to take until they have someone appointed by the administration to make the final call.

Thrown into the mix are apparent concerns that CFIUS staffers might also be less inclined to approve large, sensitive deals at a time when government employees are being cut as part of the Trump administration’s Department of Government Efficiency initiative under Elon Musk.

Though blame for the delay is being attributed to the Trump administration, the controversial aspect predates the last U.S. election and G42 has already been in the spotlight previously over concerns about its China links, particularly when Microsoft Corp. invested $1.5 billion into the company in April 2024.

Clearly anticipating issues under the previous administration, Cerebras and G42 amended a filing to the CFIUS to state that the shares G42 would acquire are nonvoting securities, which they argued should not be subject to CFIUS review; this was always going to be an issue no matter who was in power. The companies then apparently requested to withdraw the filing altogether in September, two months before the election, and CFIUS has been considering the request since then.

Though it’s unclear how long Cerebras will have to wait, executives are said to remain confident that the deal will eventually go through and intend to proceed with the IPO once it receives approval.

Photo: Cerebras Systems