AI Chip Startup Etched Hits $10.3B Valuation
AI chip startup Etched raised $300 million, reaching a $10.3 billion valuation.
"Etched just cashed in big, proving skeptics wrong. Their AI chips are shaking up the game, no GPUs needed. Watch out, big tech."
AI chip startup Etched has secured $300 million in a new funding round, elevating its valuation to $10.3 billion. This investment more than doubles its previous valuation of $5 billion from seven months prior. The funding round was led by Sequoia, with participation from Andreessen Horowitz, SK Hynix, Jane Street, and Diffusion Capital, among other investors.
Etched, founded by three Harvard dropouts, specializes in AI chips and memory components designed to accelerate AI model inference without requiring GPUs. The company states its systems can run any AI model, including Mixture of Experts models and non-transformer designs. Etched has developed a prefill chip for faster operation at lower voltage and a new memory and interconnect technology called cluster-scale memory for decode processes, aiming for high speeds and reduced costs.
This new funding round follows Etched's announcement that its homegrown chips were successfully manufactured and its first full systems were being tested by clients. The company also reported booking $1 billion worth of orders. Etched's technology aims to address specialized compute needs for AI, having faced skepticism since its launch.
This significant funding round for Etched highlights continued investor confidence in specialized AI hardware. Businesses relying on AI inference could see benefits from Etched's technology, potentially leading to faster and more cost-effective AI operations.
Relevant tools
Find the right AI tool for your business
Chat with Insta and get matched to the right tool in seconds.
Try Insta Tool Finder →