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 receiving investment offers at double or more its value, according to sources familiar with the company.
Investment Offers
Etched is currently reviewing incoming bids ranging from $40 billion from top-tier investors to $50 billion from lesser-known backers. These fundraising discussions are in the early stages, so the terms of any potential deal may change. Etched declined to comment on the matter.
Industry Context
While this rapid timeline for another mega round may seem surprising, Etched is targeting a particularly expensive segment of the AI industry: building full AI hardware systems powered by its proprietary chips. If the company raises as much as it did in its last round, it could secure up to 3.5 years of runway.
Competitive Landscape
Venture capitalists are eager to invest in Etched due to its potential to challenge Nvidia. Notably, quant trading firm Jane Street led the last $700 million round and is also a customer that has taken delivery of an early system. In July, Etched announced that it had already secured $1 billion in customer orders, including one from Jane Street, after manufacturing its test chip at a TSMC factory this summer.
