(Reuters) -Cerebras Systems recorded an over threefold jump in annual revenue in 2023, the artificial intelligence chip firm said on Monday in its paperwork for a US initial public offering.

Businesses racing to adopt AI applications like ChatGPT have benefited the companies behind the semiconductors needed to power the technology. AI chip leader Nvidia’s (NVDA) stock has more than doubled in market value this year and briefly dethroned Microsoft (MSFT) as the world’s most valuable company.

Still, concerns of excessive euphoria around AI-linked stocks prompted some investors to exit the technology sector earlier in the year, and the Cerebras IPO will likely serve as a litmus test for the market’s AI appetite.

The Sunnyvale, California-based company did not disclose the terms or size of its offering.

Receding recession fears and a strong equities rally have also rejuvenated the U.S. IPO market in 2024 after two lackluster years.

Cerebras designs processors for AI training and inference, and builds AI systems to power the processors and feed them data.

On Monday, the company revealed total revenue of $78.74 million for the 12 months ended Dec. 31, 2023, up from $24.62 million in 2022.

It recorded a net loss of $127.16 million for the same period, compared with a loss of $177.72 million in 2022.

Cerebras has been backed by a number of high-profile investors, including the Abu Dhabi Growth Fund and Coatue Management.

Citigroup, Barclays, UBS Investment, Wells Fargo Securities and Mizuho are among the underwriters for the offering.

Cerebras will list on the Nasdaq Global Market under the symbol “CBRS”.

(Reporting by Pritam Biswas in Bengaluru; Editing by Devika Syamnath)