Nvidia challenger AI chip startup MatX raised $500M

MatX Raises $500 Million Series B to Build LLM Chip

MatX, a chip startup founded by two former Google hardware engineers, has secured a $500 million Series B funding round led by Jane Street and Situational Awareness, an investment fund formed by former OpenAI researcher Leopold Aschenbrenner. The company aims to revolutionize the chip industry by creating processors that are 10 times more efficient at training Large Language Models (LLMs) and delivering results compared to Nvidia’s GPUs.

Joining Jane Street and Situational Awareness in this funding round are Marvell Technology, NFDG, Spark Capital, and Stripe co-founders Patrick Collison and John Collison. MatX’s founder and CEO, Reiner Pope, made the announcement on LinkedIn, highlighting the company’s mission to develop cutting-edge technology in the chip space.

While the exact valuation of MatX after this funding round has not been disclosed, its competitor Etched recently raised $500 million at a $5 billion valuation. MatX previously raised about $100 million in its Series A round, indicating significant growth and investor interest in the company.

Before founding MatX in 2023, Reiner Pope led AI software development for Google’s TPUs, while his co-founder, Mike Gunter, was a key designer of the TPU hardware. With a strong background in AI chip development, the team at MatX is well-positioned to disrupt the industry and drive innovation in processor technology.

The new funding will enable MatX to collaborate with TSMC to manufacture its chips, with plans to begin shipping them in 2027. This timeline aligns with the company’s vision to bring its advanced processors to market and compete with established players in the semiconductor industry.