UK chip startup Fractile in talks to raise at $6.5bn valuation, reports say
UK chip startup Fractile is reportedly in advanced talks to raise capital at a $6.5 billion valuation, sources say. The talks, which could see the company bring in around $600 million, are being co-led by Lightspeed Venture Partners and Redpoint, according to Bloomberg. This would give Fractile a valuation six times higher than its previous funding round in May, which was reported at a $220 million valuation.
Fractile, founded in 2022 by CEO Walter Goodwin, is developing chips specifically for AI inference. Notable investors in the startup include Peter Thiel’s Founders Fund, Accel, and Oxford Science Enterprises. Fractile has also inked a deal to supply chips to US AI lab Anthropic. The UK government has been actively backing homegrown tech startups in crucial sectors, recently unveiling a £1.1 billion AI hardware plan to bolster domestic chip companies.
Fractile is among several European companies vying to develop new chips to capitalize on the soaring demand for AI hardware.
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