BUSINESS

San Jose AI chip startup Etched reaches $10.3B valuation

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Etched, a San Jose, California-based artificial intelligence chip startup, has raised $300 million in a Series C round led by Sequoia Capital, valuing the company at $10.3 billion. The raise, completed roughly seven months after its previous round, doubles Etched’s valuation and marks the largest Series C ever led by Sequoia. New investors include SK Hynix and Jane Street, joining existing backers Andreessen Horowitz, Peter Thiel, Jump Trading, and Diffusion. Founded less than four years ago by three Harvard dropout co-founders, Etched has now secured more than $1.1 billion to scale its specialized AI inference processors aimed at competing with Nvidia.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

2023: Founders secure initial Sequoia backing
Past four years: Etched raises over $1.1 billion
Seven months ago: Previous funding round completed
2025: AI inference chips forecast $17.73 billion
2026: Sector projected to reach $20.51 billion
Today: Etched announces $300 million Series C
Today: Company valuation reaches $10.3 billion
2030: AI inference chips expected $36.97 billion

Why This Matters to You

Etched's growth could impact your tech investments. Its specialized AI chips are set to compete with Nvidia, a market leader. If you're invested in AI tech, keep an eye on Etched's progress.

The Bottom Line

Etched's $10.3 billion valuation shows the high stakes in the AI chip market. With the sector projected to reach $20.51 billion by 2026, there's room for growth. Worth forwarding if you know someone interested in tech investments.