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College dropouts raise $120 million to take on Nvidia's AI chips


A team founded by college dropouts has raised $120 million from investors led by Primary Venture Partners to build a new AI chip to take on Nvidia.

Headquartered in Cupertino, California — home to Apple — Etched is developing a chip called Sohu, which the company says will be used to train and deploy AI models using "transformers," the core architecture underpinning advancements like OpenAI's ChatGPT. For the business to work, companies that are spending billions of dollars on GPUs will need to see some significant savings in building custom chips designed for their specific AI model and be willing to make trade-offs in flexibility. But Etched is taking on some of the most valuable companies in the world, including Nvidia, which have massive development teams and access to the capital needed to secure production and improve their chips on an annual basis.

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