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In 2026, AI chip startups raised $8.3 billion in funding, globally, according to Dealroom

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Barring a near total collapse of the market, the sector is expected to see record sums pumped into it this year.

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Summary

In this article PRX-NL NVDA TSM ASML This report is from this week's The Tech Download newsletter. Nvidia has cemented itself at the heart of the AI boom with a monopoly on the most powerful chips to train and run models, but a growing crop of startups are set on challenging the company's supremacy. And increasingly, investors are throwing huge sums behind them. In 2026, AI chip startups raised $8.3 billion in funding, globally, according to Dealroom. While Nvidia's graphics processing units (GPUs) — which were originally designed for gaming — have been effectively repurposed for AI training, focus is now shifting to the most efficient ways to deploy the tech in applications, known as AI inference. In December, the company acquired assets from AI inference startup Groq for $20 billion and announced it had invested $4 billion into two companies developing photonics technology in March.

Startup funding But investors haven't been deterred from throwing money behind new, and often untested at scale, AI chip technology. In the U.S. — where many of the biggest rounds have been raised — Cerebras Systems picked up $1 billion in February, and there have been $500 million rounds in 2026 for MatX, Ayar Labs and Etched. European companies have raised comparatively smaller sums, but Axelera and Olix have both raised rounds north of $200 million this year. Others, including Euclyd and Optalysys told me they're planning rounds of at least $100 million in 2026, as are Fractile and Arago, according to reports. Anthropic unveiled a new office space for 800 people, while OpenAI said it would open its first permanent London office with capacity for over 500 team members. TSMC on Thursday reported a 58% increase in first-quarter profit, beating estimates and hitting a fresh record as demand for artificial intelligence chips stayed strong.

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