AI chip startup Etched's valuation soars to $20 billion, consecutive funding rounds attract attention

Etched, a startup making low-voltage AI chips, is in talks for a new funding round at a valuation of about $20 billion. That's a big jump from its $5 billion valuation last December. The US company focuses on designing special chips for AI reasoning, and its 4nm accelerator is known for being energy-efficient.

Etched just finished a funding round led by Sequoia Capital at a $10 billion valuation, and now existing investor Jane Street is leading the next round. These quick funding rounds show that AI investment is driven by companies needing money, and there's growing interest in alternatives to NVIDIA.

The core chip from Etched uses multi-layer design to cut voltage by over 50% compared to most rivals, making it more efficient for computing. The company has already taped out its 4nm reasoning accelerator, which strengthens its position in the low-power AI chip market.