Exclusive-Sequoia-backed chip startup Nuvacore raising funds at about a $2.5 billion valuation, sources say

Six-month-old microchip startup Nuvacore, valued at approximately $2.5 billion, is seeking to raise hundreds of millions of dollars to develop a new central processor for data centers, according to sources. The startup, based in San Jose, California, does not yet have a product. Nuvacore's design strategy involves building the core functionality of the chip before committing to a specific architecture like x86 or Arm, allowing for optimization of computations common in data centers and AI infrastructure.

Founded by former Apple executives Gerard Williams, John Bruno, and Ram Srinivasan, Nuvacore joins a trend of young chip startups seeking billion-dollar valuations before releasing a product, fueled by increased investor interest in AI hardware.