A little-known AI chip startup just secured $1 billion in sales before its first product even shipped
Etched, a two-year-old company taking on Nvidia, revealed it has $1 billion in contracts for its AI systems, all before finishing tests on its first chip. The startup also shared it raised $500 million late last year at a $5 billion valuation, bringing its total funding to $800 million. Its backers include major trading firms like Jane Street and Hudson River Trading, plus AI pioneers like Geoffrey Hinton and Andrej Karpathy. The company’s product is a full system, not just a chip. It combines custom-designed hardware and software to speed up AI inference, the process where models generate responses to user prompts. This is currently the most expensive and slowest part of running AI at scale, which is why investors are betting big on anyone who can improve it. Etched’s rapid rise is a sharp turn from its early days. In 2023, founders Gavin Uberti and Robert Wachen struggled to get investors interested, even with a detailed pitch arguing specialized chips would be essential...