The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Karen Kwok

NEW YORK, May 14 (Reuters Breakingviews) - The chipmaker’s shares rose 89% on their debut, a heady result after spurning the Japanese suitor, Bloomberg reported. Both are tied through OpenAI, the upstart’s key client. Circular industry logic is to fuel and capture this value. Doing so is getting too expensive.

Full view will be published shortly.

Follow Karen Kwok on LinkedIn and X.

CONTEXT NEWS

Arm Holdings and its majority owner SoftBank Group made an approach to acquire Cerebras Systems, weeks before its expected initial public offering, Bloomberg reported on May 13 citing people familiar with the matter.

UK-based Arm and its parent expressed preliminary interest in acquiring Cerebras, an approach that was rebuffed, Bloomberg says.

Cerebras priced its IPO at $185 per share on May 13, Reuters reported, above an earlier indicated range of $150 to $160. The company's shares opened at $350 in their U.S. market debut on May 14, jumping 89% above the initial public offering price, giving the chip designer a valuation of $106.8 billion on a fully diluted basis. The Sunnyvale, California-based chipmaker, which is ​a competitor to Nvidia, raised $5.55 billion in its upsized offering.