CNBC's Jim Cramer said Cerebras has a compelling AI story and promising technology, but warned the chipmaker’s valuation has become difficult to justify.

Cerebras Systems Inc. raised $5.55 billion in its US initial public offering, as the artificial intelligence chipmaker seizes on the surging demand for semiconductors.

Cerebras raised $5.55 billion in its IPO, and with the chipmaker's offering, investors are gearing up for some even bigger AI deals later this year.

Cerebras Systems, the AI chipmaker rival to Nvidia, is set to raise more than $5.5bn after pricing its US IPO at $185 per share.

Cerebras starts trading on Nasdaq Global Select Market on Thursday under the ticker symbol 'CBRS'.