The situation is further complicated by the Trump Administration's Department of Government Efficiency initiative, which has led to staff cuts, potentially affecting CFIUS's willingness to approve sensitive deals. Cerebras and G42 attempted to mitigate concerns by amending their filing to state that G42's shares would be non-voting securities, but the issue persists. The companies have since requested to withdraw the filing, and CFIUS is currently considering this request. Despite these challenges, Cerebras is confident in moving forward with the IPO once the necessary approvals are obtained.
Key takeaways:
- Cerebras Systems' IPO is delayed due to unresolved CFIUS review related to national security concerns.
- The delay is linked to an investment from Abu Dhabi-based G42, which has past ties to China.
- The Trump Administration's lack of key appointments, including an assistant Treasury secretary for investment security, contributes to the delay.
- Cerebras and G42 attempted to amend their CFIUS filing to avoid review by stating G42's shares are non-voting securities.