Updated
Updated · TechCrunch · Aug 18
Etched Raises $700 Million at $21 Billion Valuation as Jane Street Backs Tested AI Chips
Updated
Updated · TechCrunch · Aug 18

Etched Raises $700 Million at $21 Billion Valuation as Jane Street Backs Tested AI Chips

1 articles · Updated · TechCrunch · Aug 18

Summary

  • $700 million in new funding lifted Etched’s valuation to $21 billion, roughly doubling it from $10.3 billion just a month after its July Series C.
  • Jane Street led the round after testing Etched’s hardware and installing its own rack in a datacenter, citing early results strong enough for demanding workloads.
  • Etched says investor demand reflects its inference-focused design: a low-voltage prefill chip plus cluster-scale memory and interconnects for decode, aimed at faster output and lower costs.
  • The startup sells full AI systems it calls frontier inference clusters and is still pushing back on an old perception that its chips are locked to a single frontier model.

Insights

Jane Street secretly tested this new AI chip before investing millions; what exactly did they discover that justifies a $21 billion price tag?
Can a startup founded by dropouts actually dethrone current AI hardware monopolies with a radically new two-chip inference design?