Stripes, a prominent investment house, spearheaded the funding round, with input from renowned business magnate Peter Thiel, setting the company’s worth at $5 billion, according to informants who requested to remain unnamed due to the agreement not being officially declared yet. Positive Sum and Ribbit Capital also took part in the investment. Overall, Etched has secured approximately $1 billion in funding, sources revealed. The enterprise, located in San Jose, California, chose not to issue a statement.
Etched is crafting an AI processor dubbed Sohu, aiming to capitalize on the increasing requirement for processing capacity for artificial intelligence. The new business is collaborating with Taiwan Semiconductor Manufacturing Co.’s (TSMC) Emerging Businesses Group to produce the silicon and has recruited professionals who formerly were employed at Cypress Semiconductor and Broadcom Inc.
Nvidia is the foremost producer of AI accelerators — processors that aid in constructing and implementing artificial intelligence algorithms. Its achievements have inspired various new ventures to contest its supremacy, but rivalry is still intense. Nvidia has stated that the need for its offerings is still expanding, and the corporation forecasts over half a trillion dollars in revenue from data center providers by the close of 2026.
Peter Thiel and Positive Sum were among Etched’s earlier benefactors, together with Primary Venture Partners and private backers like ex-GitHub CEO Thomas Dohmke and one-time Coinbase leader Balaji Srinivasan.
Source: Bloomberg