Chip Startup Velaura AI Tops $1 B Valuation as Investors Pour in $110 M
Synopsis
The Series A round brings fresh backing for the company’s AI chip technology, which is designed to reduce the energy and operating costs of data centres.
Key Highlights
- Velaura AI has raised $110 million in a Series A funding round.
- The latest investment puts the chip-design startup’s valuation above $1 billion.
- The company develops low-power chips and software for AI data centres, robotics and autonomous systems.
- Velaura says its technology is already being used in more than 30 million chips.
Velaura AI Raises $110 Million
Velaura AI announced on Tuesday that it has secured $110 million in Series A funding, pushing the company’s valuation above the $1 billion mark.
Seligman Ventures led the round, while new investor Capricorn Investment Group also joined. Existing backers Samsung Catalyst Fund, StepStone Group and Maverick Silicon participated as well.
Focus on Lower Power Use
Velaura develops low-power chips and software for data centres and physical AI applications, including robotics and autonomous systems. Its technology is aimed at helping AI data centres cut power consumption and reduce operating costs.
Earlier this year, the company introduced Titan Core, its own chip-design platform focused on improving efficiency and lowering power consumption for data centre workloads. Velaura plans to use the new funding to accelerate the development and rollout of its AI products. The company also expects to expand its engineering and customer-facing teams.
Cloud Providers Among Potential Customers
Velaura co-founder and CEO Rajiv Khemani told Reuters that the company is working with three of the four largest cloud computing providers as potential customers. He did not identify the companies. Velaura says its technology has already been deployed in more than 30 million chips.
The company uses a licensing model that combines an upfront technology fee with a royalty tied to a share of the power savings generated by its technology. Khemani compared the approach with Arm’s earlier per-chip licensing model, before Arm moved into selling its own chips.
Growing Demand for Efficient Computing
Seligman Ventures managing partner Umesh Padval said Velaura is well positioned to benefit from the rising electricity demand of AI data centres, as well as growing interest in energy-efficient computing for robotics.
Khemani believes the next phase of AI development will require more than increasingly capable models. Computing also needs to become more efficient and cost-effective as AI workloads continue to expand.
Source: Reuters
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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