Benchmark Capital just made one of its biggest bets ever on an AI chip startup it's backed since 2016. The Silicon Valley heavyweight poured at least $225 million into Cerebras Systems through two specially created investment vehicles, part of a $1 billion funding round that values the Nvidia rival at $23 billion. That's nearly triple the $8.1 billion valuation Cerebras commanded just six months ago, and it signals that top-tier VCs are racing to lock in stakes before a wave of AI infrastructure companies go public.
Benchmark Capital doesn't typically create special investment vehicles for a single company. But when it comes to Cerebras Systems, the storied VC firm is playing by different rules.
The Silicon Valley outfit just funneled at least $225 million into the AI chipmaker through two separate vehicles, both named 'Benchmark Infrastructure,' according to a person familiar with the deal and regulatory filings reviewed by TechCrunch. The investment is part of Cerebras' $1 billion Series H round announced this week, which values the company at $23 billion - nearly triple its $8.1 billion valuation from just six months ago.
Benchmark declined to comment, but the move speaks volumes about the firm's conviction in its decade-long bet. Benchmark first backed Cerebras when it led the startup's $27 million Series A back in 2016, when the company was still developing its radical approach to AI chip design. Now, as Cerebras prepares for a public debut in the second quarter of 2026, Benchmark is doubling down in a way that pushes against its own institutional constraints.
The firm famously keeps its flagship funds under $450 million to maintain focus and ownership discipline - a strategy that's delivered home runs like Uber, Twitter, and . But that size cap creates a problem when portfolio companies raise billion-dollar rounds at multi-billion-dollar valuations. Enter the special-purpose vehicles, created specifically to pump more capital into Cerebras without breaking Benchmark's fund size philosophy.
