Etched in early talks to raise $40B-$50B valuation
Etched, an AI inference‑chip startup, is reportedly in early talks to raise funding at a $40B-$50B valuation, up from its $21B valuation in August. The company has already raised $700 million in September at a $21 billion valuation and is reviewing offers that could give it a cushion of up to 3.5 years of runway.
Key points
- Etched in early talks to raise $40B-$50B valuation
- Last round $700M at $21B valuation in September
- Jane Street led last round and is a $1B customer
The startup’s last round was led by Jane Street, which also became a customer, placing an order of $1 billion for its chips. Etched has attracted engineers from Nvidia, with roughly 15 % of its 400‑person workforce having worked there. The company claims its chips can process more tokens faster and at a lower cost than Nvidia’s.
If the new round materialises, it would position Etched as a potential challenger to Nvidia in the high‑end AI hardware market, while also highlighting the continued appetite of investors for companies building end‑to‑end AI systems.
Sources: AI inference-chip startup Etched is in early talks to raise funding at a $40B-$50B valuation, up from $21B in August
techcrunch.com · 5 October 2026
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