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

San Francisco-based microchip startup Nuvacore, valued at approximately $2.5 billion, is seeking funding as the demand for data center central processors surges due to the growing demand for AI-powered services like chatbots. Despite not yet having a product, the company is raising funds to develop a new type of central processor that focuses on optimizing computations common in data centers and AI infrastructure.

Nuvacore's unique design strategy involves building the core functionality before committing to a specific architecture, unlike competitors Intel and AMD who use x86 technology, and Arm, which is prevalent in mobile devices. The startup, founded by Gerard Williams, John Bruno, and Ram Srinivasan, including a former Apple executive, has secured a seed funding round led by Sequoia Capital.