AI chip startup Etched raises $700M at $21B valuation

AI chip startup Etched announced on August 18 that it raised $700 million at a $21 billion valuation. Jane Street led the round and has already received the first batch of AI accelerator racks. Jane Street said initial test results were satisfactory, with the chip delivering the precision needed for demanding workloads. Etched's fundraising has been rapid: it raised $500 million at a $5 billion valuation in December 2025, and another $300 million led by Sequoia Capital in July 2026, valuing it at $10.3 billion. This latest round doubles the valuation in less than a month, highlighting strong demand for specialized AI inference chips.