Etched fields funding offers at $40B+ valuation, sources say
AI chip startup Etched is reportedly receiving investment offers at valuations between $40 billion and $50 billion, just months after a $21 billion valuation round. The company is gaining traction by developing proprietary hardware designed specifically to accelerate AI inference.
Why it matters
The massive valuation reflects intense investor interest in hardware alternatives to Nvidia for AI infrastructure.
Although it’s only been a couple of months since Etched raised $700 million at a $21 billion valuation , the AI chip startup is already being plied with investment offers at double or more its value, according to people familiar with the company.
Etched is reviewing incoming bids that range from $40 billion from top-tier investors to $50 billion from lesser-known backers, one person said. These fundraising talks are early, so terms of any deal, should one happen, may change. Etched declined to comment.
While this may seem like a fast time-table to raise another mega round, Etched is pursuing a particularly expensive segment of the AI industry: building full AI hardware systems powered by its own proprietary chips. The person familiar with these offers said that if it raises as much as its last round, this could give Etched a cushion of as much as 3.5 years of runway.
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