UK Sovereign AI Fund joins $6.5bn round for Anthropic-backed Fractile
The UK government’s Sovereign AI Fund is set to invest in Fractile, a London-based chipmaker backed by Anthropic, as part of a new funding round. The deal is expected to value the startup at approximately $6.5bn (£4.8bn), a significant increase from its valuation of about $1bn earlier this year. Sources indicate the round will raise around $700m, with the Sovereign AI Fund among the new…
Key points
- Fractile is raising $700m at a $6.5bn valuation, up from $1bn earlier this year.
- The UK Sovereign AI Fund is joining the round alongside Lightspeed and Redpoint.
- Anthropic has a $250m deal with Fractile for specialized AI chips.
Fractile, founded by Oxford robotics expert Walter Goodwin, develops chips that fuse memory components onto processors to speed up AI tasks. The company has a reported $250m deal with Anthropic to supply these specialized chips, which Anthropic claims will reduce the cost of intensive AI workloads. The funding round is being led by Silicon Valley firms Lightspeed and Redpoint, with participation from Thrive Capital and Founders Fund.
This investment occurs amid broader concerns about the sustainability of massive AI infrastructure spending. The Sovereign AI Fund, initially backed with £500m in taxpayer money and recently boosted by an extra £60m from the Chancellor, has also invested in other high-growth UK AI startups like Ineffable Intelligence and Olix. Fractile and the government declined to comment on the specific terms of the deal.
Labour’s AI fund joins $6.5bn deal for Anthropic-backed chipmaker
telegraph.co.uk · 1 November 2026
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