AI chip startup Etched.ai has raised $120 million in an international funding round, positioning itself to challenge giant Nvidia in the AI chip market.
Founded in 2022 by Gavin Uberti and Chris Zhu, the company aims to develop a specialized chip called “Sohu” to power Transformer Models, the models that power technologies like OpenAI’s ChatGPT.
Sohu is the first chip dedicated to transformer models only, making it more power efficient and faster than general-purpose chips like Nvidia’s GPUs.
The company claims its chip is capable of processing 500,000 characters per second, far exceeding the capabilities of Nvidia’s latest chips.
Gavin Uberti, CEO of Etched.AI, said the company focused on transformer models only because they are confident that these models will continue to dominate AI in the future. He also noted that Sohu offers significantly higher performance than current Nvidia chips, making it a more cost- and power-efficient alternative.
The company has partnered with TSMC to manufacture chips using 4nm manufacturing technology, which enhances the chip’s ability to deliver superior performance. The company also confirmed that it has received support from prominent investors such as Peter Thiel, which strengthens its competitive position in this vital market.
HD.AI’s strategy involves specializing in transistors that process data in predictable ways. This allows the Sohu chip to devote more space to transistors, boosting its initial computing power.
This innovation is expected to have a significant impact on the AI industry, as it could lead to significant improvements in the efficiency and speed of model operation, enhancing the uses of AI in various fields, especially generative AI models.
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