Etched AI chip startup in talks to raise at $40B to $50B valuation

Etched, an AI chip startup focused on inference computing, is in early-stage discussions to raise new funding at a valuation between $40 billion and $50 billion, according to sources. This represents a significant jump from the $21 billion valuation at which the company raised $700 million just two months earlier in August.

The rapid revaluation reflects intense investor competition for AI hardware startups as demand for inference chips—used to run trained AI models at scale—accelerates. Etched has positioned itself in a crowded but growing market that includes established players and newer entrants.