Etched, an AI chip startup, is receiving funding offers valuing the company between $40 billion and $50 billion, more than double its $21 billion valuation from a $700 million raise just months ago, according to techcrunch.com. The early-stage talks involve top-tier and lesser-known investors, with terms still subject to change.
The startup, founded four years ago, is targeting the costly AI hardware market by building full systems powered by proprietary chips. Etched’s last $700 million round was led by quant trading firm Jane Street, which is also a customer. The company has secured $1 billion in customer orders, including from Jane Street, after manufacturing a test chip at TSMC this summer. Co-founder and COO Robert Wachen highlighted the startup’s design of two new components to accelerate AI inference.
Etched’s rapid valuation increase underscores investor interest in AI hardware firms competing with Nvidia. The company’s approach to designing specialized chips and systems addresses growing demand for AI inference speed and efficiency. Its $1 billion in orders and backing by a major trading firm position it as a notable player in the AI chip sector, which is attracting significant venture capital.
If Etched raises an amount similar to its last round, it could secure up to 3.5 years of operational runway, according to techcrunch.com. The startup’s next funding steps and potential deal terms remain to be finalized as it reviews the incoming offers.