AI chip unicorns Etched.ai and Cerebras Systems get big funding boost to target Nvidia
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AI chip unicorns Etched.ai and Cerebras Systems get big funding boost to target Nvidia. Nvidia Corp. has been in pole position in the artificial intelligence chip market for as long as the industry has existed, but it may want to keep an eye on the rear-view mirror as some of its biggest rivals are getting the financial backing they need to shift into a higher gear. For instance, the AI chip startup Etched.ai Inc. said today it has closed on a bumper $500 million funding round that brings its value to more than $5 billion. Meanwhile, an even more prominent rival called Cerebras Systems Inc. is reportedly in talks to raise double that amount, even as it finalizes plans for an initial public offering later this year. Etched.ai is the lesser known quantity here, but today's round, which was led by Stripes and saw participation from the entrepreneur Peter Thiel, brings its total amount raised to almost $1 billion. That's a pretty sizable war chest for a two-year-old startup that's developing a highly specialized chip that's optimized to run so-called "Transformer" models that sit at the heart of OpenAI Group PBC's ChatGPT and Google LLC's Gemini chatbots. The chip in question is called Sohu, which is a kind of application-specific integrated circuit that's designed to run a specific workload with the greatest possible efficiency in terms of power consumption, performance...
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