AI Chips: Etched, Nvidia rival, secures $800 million funding

Etched is a startup focused on creating specialized chips for artificial intelligence. Their stated goal is to directly challenge Nvidia, aiming to cut costs and boost efficiency for AI workloads. They position themselves as the fresh alternative in the market.

The startup Etched announced it has successfully raised a whopping $800 million in funding. That's a serious chunk of change for a company that's practically still a baby. Bloomberg reported this news on June 30, 2026, so it's fresh off the press.

The AI chip market is currently dominated by Nvidia, essentially selling the “picks and shovels” for the AI gold rush. Etched aims to jump right in, offering hardware specifically designed for transformers, the most common AI models. They promise better performance using less power.

Some pretty big names are among the investors. Jane Street, one of the largest quantitative trading firms, has put its money into Etched. There's also a venture capital fund linked to TSMC, the Taiwanese giant that produces most of the world's chips.

The $800 million didn't just appear out of nowhere. Jane Street, known for its strategic investments, clearly sees potential in Etched. A VC fund with ties to TSMC joining the round suggests some serious technical credibility. After all, TSMC knows a thing or two about making chips.

Having an investor like Jane Street implies confidence in Etched's ability to generate profits. The involvement of a TSMC-linked VC could also pave the way for future manufacturing partnerships. It's not every day a startup claims $1 billion in customer contracts already, even before mass production.