Etched Raises $800 Million as AI Chip Race Intensifies
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Etched Raises $800 Million as AI Chip Race Intensifies Khac Phu Nguyen Tue, June 30, 2026 at 4:28 PM EDT 1 min read NVDA 2330.TW This article first appeared on GuruFocus . AI chip startup Etched said it has raised $800 million, adding fresh momentum to the race for AI inference chips as investors look for the next possible challenger to Nvidia ( NASDAQ:NVDA ). The company also disclosed that its backers include Jane Street and VentureTech Alliance, a venture firm linked to Taiwan Semiconductor Manufacturing Co. Etched now plans to begin shipping chips to some customers this summer, which could put the startup closer to commercial deployment after staying quiet publicly for about two years. Warning! GuruFocus has detected 3 Warning Signs with NVDA. Is NVDA fairly valued? Test your thesis with our free DCF calculator. The latest funding details show that Etched closed a $500 million round in December led by Stripes, with participation from Peter Thiel, Positive Sum, Ribbit Capital, Jane Street, Hudson River Trading, Two Sigma and VentureTech Alliance. Jane Street also led a previously undisclosed round and has added more capital since then, bringing its total investment in Etched to more than $100 million, according to people familiar with the matter. Other investors include Geoffrey Hinton, Fei-Fei Li and Stanley Druckenmiller ( Trades , Portfolio ), giving the startup a notable mix of AI, trading and hedge fund backing. Etched, founded in 2022, said it is testing its products and has signed $1 billion in sales contracts, though it declined to name customers. The company is working with TSMC on low-voltage inference technology and is designing the full server rack around its chips, from circuit boards to cooling plates and networking connections. That full-stack approach could become important if customers keep looking for near-term AI compute supply, especially as the industry shifts more attention from training models to running them.
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