Oct 3 (Reuters) - AI chip startup Cerebras Systems,

which competes with industry leader Nvidia ( NVDA ) in the

booming AI chip market, on Friday filed to withdraw its plans

for an initial public offering in the United States, effective

immediately.

Its withdrawal comes as U.S. IPO activity picks up in recent

months, reversing an earlier slowdown caused by trade-policy

uncertainty, with recent listings drawing strong investor

demand.

Cerebras on Tuesday said it

raised $1.1 billion

in a funding round led by Fidelity Management & Research

and Atreides Management, valuing the company at $8.1 billion.

"Given that Cerebras just very recently completed a

sizeable fund raise, it is of no surprise that they are holding

off to pursue the IPO at this time," said Josef Schuster, CEO of

IPO research firm IPOX.

Last year, Cerebras filed for an initial public offering on the

Nasdaq. The company's highly anticipated listing was delayed by

a U.S. national security review of a $335 million investment by

G42, an Abu Dhabi-based cloud computing and AI company.

"We believe this is more a company-specific strategic

decision and does not tell us anything about the state of U.S.

IPO sentiment, which we view as exceptionally strong," Schuster

added.

Sunnyvale, California-based Cerebras Systems makes

high-performance AI chips and systems designed to speed up

training and running large AI models, offering faster and

cheaper alternatives to traditional GPUs.