Etched Reviews Early Bids Valuing AI Chip Startup at Up to $50 Billion

Etched is reviewing preliminary bids valuing the AI chip startup at $40 billion to $50 billion, about a month after its September funding round valued it at $21 billion.

The early discussions include bids at the lower end from top-tier investors and offers as high as $50 billion from lesser-known backers. Terms could change if a deal moves forward; no financing has been completed.

Etched raised $700 million at a $21 billion valuation in September, following a $300 million round at a $10.3 billion valuation in July. The startup is developing full AI hardware systems powered by its own proprietary chips.

In July, Etched said it had secured $1 billion in customer orders, including one from Jane Street. Etched says its chips can handle more tokens with greater speed and lower costs than Nvidia’s chips.

Etched declined to comment on the latest funding discussions.