Artificial intelligence (AI) chip startup d-Matrix has raised $110m from investors including Microsoft, as the total value of capital raised in the AI market plummeted last year.
The US-based startup raised the money in a Series B funding round led by Temasek, with a series of high-profile investors.
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Some investors have shied away from competing with NVIDIA for market share which has led many chip startups to struggle in raising money, according to Reuters. Nvidia holds a large amount of power in the market due to the mix of both software and hardware.
Talking to Reuters, d-Matrix CEO Sid Sheth said: “This is capital that understands what it takes to build a semiconductor business.”
The start-up designs chips that are specifically designed to be used in booming generative AI products like OpenAI’s ChatGPT.
d-Matrix says it’s different to Nvidia as it doesn’t compete for its chips to be used in large AI models, and instead focuses on optimising quicker AI computer code.
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By GlobalDataMicrosoft, which has backed the start-up, announced they would be looking at how they can utilise the company’s chip when it hits the market next year.
The news comes as the total value of global AI deals fell significantly in 2022 from the year prior, according to research company GlobalData.
In 2022, the value of AI deals totalled $113.8bn, a significant decrease from $144.7bn in 2021.
In 2023 so far, deals in AI total $77.8bn with four months left until the year's end.
GlobalData estimates the total AI market will be worth $383.3bn by 2030, implying a 21% compound annual growth rate between 2022 and 2030.
The analyst predicts that the country that emerges on top in AI will lead the Fourth Industrial Revolution.
Our signals coverage is powered by GlobalData’s Thematic Engine, which tags millions of data items across six alternative datasets — patents, jobs, deals, company filings, social media mentions and news — to themes, sectors and companies. These signals enhance our predictive capabilities, helping us to identify the most disruptive threats across each of the sectors we cover and the companies best placed to succeed.
