- San Francisco-based Etched.ai secures $120 million in funding led by Positive Sum and Primary Venture Partners.
- Known for its Sohu AI chip specialized in training and deploying large language models.
- Partners with Taiwan Semiconductor Manufacturing Co. to challenge Nvidia in AI chip market.
- Focus on cost-efficiency and energy conservation to address AI’s energy consumption concerns.
- Semiconductor startup funding sees robust revival in 2024 with $5.3 billion raised in 175 deals.
- Significant raises include Black Semiconductor ($275M) and Celestial AI ($175M Series C).
- Samsung rumored to lead a $300 million round for AI chip startup Tenstorrent.
Main AI News:
San Francisco-based Etched.ai has secured a substantial $120 million investment round, led by Positive Sum and Primary Venture Partners, riding high on the current investor enthusiasm surrounding AI chips. The startup is renowned for its specialized transformer-centric AI chip, Sohu, pivotal in training and deploying large language models crucial to generative AI advancements.
Partnering with Taiwan Semiconductor Manufacturing Co., Etched.ai aims to challenge industry heavyweight Nvidia’s dominance in the AI chip market. Promising enhanced cost-efficiency and energy conservation, the company seeks to address concerns over the substantial energy consumption typical of AI technologies.
The surge in funding for semiconductor startups signals a robust revival in the sector, with VC-backed chip startups raising approximately $5.3 billion in 175 deals in 2024 to date, contrasting starkly with the slump experienced in 2023. Significant funding highlights this year include Black Semiconductor’s recent $275 million raise and Celestial AI’s $175 million Series C, focusing on optimizing AI processing efficiency through innovative photonic fabric platforms.
With industry momentum building, anticipation surrounds potential future funding rounds, including reports of Samsung’s involvement in a substantial investment round for Toronto-based AI chip startup Tenstorrent, potentially exceeding $300 million. This influx of capital underscores growing confidence in the transformative potential of AI chip technologies, poised to reshape industries from AI-driven automation to advanced computing solutions.
Conclusion:
The $120 million investment in Etched.ai underscores growing investor confidence in AI chip technologies. With significant funding rounds and strategic partnerships, the semiconductor sector is poised for substantial growth, driving innovation in AI-driven applications and reshaping competitive dynamics in the market.
