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Unwrapping the next IPO
Jackson Berger
December 24, 2025
TL;DR. AI’s hardware and defense stack is heating up fast. Nvidia rival Cerebras is quietly lining up a long-awaited IPO as demand for AI compute keeps IPO markets open. The Pentagon is doubling down on AI, tapping Elon Musk’s xAI to embed Grok into daily military operations. And ServiceNow just pulled the trigger on a $7.75B acquisition of Armis, underscoring how critical cybersecurity has become in an AI-driven enterprise world.
Nvidia rival and AI chip firm Cerebras set to file for IPO
Cerebras is preparing to file for a 2026 IPO, targeting a Q2 2026 listing after previously withdrawing its filing amid national security scrutiny. The AI chipmaker, valued at $8B after raising over $1B, competes directly with Nvidia and is best known for its wafer-scale AI processors.
Pentagon taps Elon Musk’s xAI in major AI build-out for military use
The Pentagon has signed a deal with Elon Musk’s xAI to integrate Grok-based AI systems into its platforms. Deployment is expected in early 2026, allowing secure handling of controlled unclassified information. The move highlights the military’s push for “decision superiority,” even as it continues to struggle with long-running financial audit failures.
ServiceNow to acquire connected device security startup Armis for $7.75B
ServiceNow agreed to acquire cybersecurity startup Armis for $7.75B in cash, a sharp jump from its recent $6.1B valuation. Armis, which generates $340M in ARR with over 50% annual growth, had been eyeing an IPO but opted for an acquisition instead. The deal significantly expands ServiceNow’s cybersecurity footprint amid rising enterprise AI adoption.
A Christmas Augment supply drop
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Quick Takes
Pulse check. From satellites and nuclear energy to autonomous reliability engineers, this week’s capital is flowing toward hard tech and AI systems built to scale critical infrastructure. Defense, energy, and enterprise software are where investors are leaning in right now. Here’s what’s catching investor attention:
More notable fundings this week
K2 Space: $250M Series C at $3B valuation – K2 Space builds large, high-power satellite platforms designed for national security and commercial missions. The California-based company raised $250M to scale manufacturing and meet rising demand for resilient space infrastructure as governments and enterprises expand satellite capabilities.
Radiant Nuclear: $300M at $1.8B+ valuation – Radiant Nuclear is developing compact, transportable nuclear reactors aimed at remote, defense, and industrial use cases. The company raised $300M led by Draper Associates and Boost VC as investor interest in nuclear power accelerates, driven by energy-hungry data centers and AI infrastructure.
Resolve AI: Series A at $1B headline valuation – Founded by former Splunk executives, Resolve AI is building an autonomous site reliability engineer that can monitor, diagnose, and remediate software issues without human intervention. The Lightspeed-led Series A used a multi-tranche structure, highlighting how top AI startups are commanding premium demand even at early stages.
MoEngage Scores $280M in Series F – MoEngage is a customer engagement platform used by consumer brands to personalize messaging across digital channels. The company raised an additional $180M led by ChrysCapital and Dragon Funds, bringing its Series F total to $280M.
Happy holidays! Until next week.
-Jack