AI chip startup Etched.ai has secured $120 million in funding, with the company developing a transformer-specific AI chip, Sohu, dedicated to training and deploying large language models.
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These language models form the foundation of generative AI. The San Francisco-based startup's latest round of funding was led by Positive Sum and Primary Venture Partners.
Etched.ai also announced a collaboration with Taiwan Semiconductor Manufacturing Company to produce this chip, which will directly compete with chip giant NVIDIA, the dominant player in the AI market. Meanwhile, the high energy consumption of AI remains a challenge, but Etched.ai believes it can offer more cost-effective and energy-efficient chips that are also faster.
Etched is just the latest chip startup to raise substantial funds. After an unforgettable 2023, venture capital investment in semiconductor chips appears to be rebounding this year. According to Crunchbase data, as of 2024, venture capital-backed chip startups have raised nearly $5.3 billion in just 175 deals.
Last year, startups raised less than $8.8 billion in 490 deals. In 2022, chip startups secured nearly $10.9 billion in 447 deals.
Key Points:
⭐ Etched.ai secures $120 million investment, developing a transformer-specific AI chip, Sohu, for training and deploying large language models.
⭐ The chip produced in collaboration with TSMC will directly compete with the AI market-leading chip giant NVIDIA.
⭐ The funding fever for AI chip startups continues to heat up, with VC-backed chip startups raising nearly $5.3 billion in 175 deals in 2024.