AI Chip Startup Challenging NVIDIA Grows to a Valuation of 30 Trillion Won

[Financial News] Etched, an artificial intelligence chip startup that has challenged NVIDIA's dominance, is expected to raise its valuation to about $20 billion, or roughly 30 trillion won, four times its previous level in a new funding round.
On the 19th local time, The Wall Street Journal (WSJ) reported that Etched, based in San Jose, California, is in the middle of a funding round led by existing investor Jane Street, a global finance and investment firm. At the same time, it is also raising money in a separate round led by Sequoia Capital, with a valuation of $10 billion, or about 15 trillion won.
Neither funding deal has been finalized yet, and the specific terms could still change.
This kind of back-to-back fundraising at different valuations has become a familiar scene amid the recent AI boom in Silicon Valley. Investors eager to secure stakes in leading AI startups have lined up, giving companies overwhelming leverage in negotiations. The structure allows them to raise more money soon after a funding round at a much higher valuation.
Etched is developing chips specialized for the 'inference' stage of running AI models. The company said it is currently testing its early chip design and is working on product validation to meet $1 billion in demand secured from customers.
The AI chip market is still dominated by NVIDIA, but many startups have recently entered the race, helped by the success of companies such as Cerebras Systems and Grok.
NVIDIA has shown overwhelming graphics processing unit, or GPU, performance in the 'training' segment, where AI models are trained.
The Journal said Etched, along with Britain's Fractile and SambaNova Systems, is focusing on the market for chips dedicated to 'inference,' where lower power consumption and efficiency are especially important.
Etched was co-founded in 2022 by Gavin Uberti, Chris Zhu, and Robert Warchen, who dropped out of Harvard University. Early investors include Stripe, PayPal Holdings, Inc. founder Peter Thiel, Ribbit Capital, and Primary Venture Partners, drawing strong market attention.

[email protected] Yoon Jae-joon Reporter