.jpg)
1 hour ago
4
Article content
(Bloomberg) — AI chip startup Positron is in talks to raise about $750 million in financing during a round with two phases, part of a groundswell of companies looking to compete with Nvidia Corp.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The first tranche of the round is expected to value the company at $3.5 billion, according to people familiar with the matter. The second phase could carry a valuation of around $5 billion, said the people, who asked not to be identified because the deliberations are private.
Article content
Article content
Positron, which is developing energy-efficient inference chips for running artificial intelligence models, has already received multiple term sheets for the round, according to one of the people. If the funding is secured, the startup would see its valuation more than triple in just five months.
Article content
Article content
Investor appetite for AI chip and infrastructure startups is growing. There’s particular interest in companies like Positron that handle inference — the stage where AI models are already trained and responding to real-world inputs.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
The deal discussions are the latest example of AI startups raising money in multiple phases in immediate succession, a sign of the ultracompetitive pressure that defines the current technology landscape. Still, the talks remain underway, and the terms could change. A representative for Reno, Nevada-based Positron declined to comment.
Article content
Positron has a long list of investors, including Valor Equity Partners, Atreides Management and DFJ Growth. Other backers include Arm Holdings Plc and Qatar Investment Authority.
Article content
This week, chip startup SambaNova Systems Inc. announced that it raised $1 billion at an $11 billion valuation. The deal talks came after Intel Corp. held discussions last year to acquire SambaNova at a lower valuation. Etched, another Nvidia rival, recently raised $800 million in funding and signed sales contracts worth $1 billion.
Article content
Cerebras Systems Inc., which also makes chips for inference, had the year’s biggest initial public offering in May. But it has highlighted the challenges of navigating an uncertain market. After soaring as high as $311.07, Cerebras’ shares now trade below their IPO price. They closed at $181.72 on Wednesday.
Article content
Nvidia, meanwhile, is working to ward off the fresh competition. It agreed to license inference chip technology from Groq in December that the company is weaving into its own products.
Article content
English (US)