Rivos AI Chip Startup Aims to Disrupt Nvidia's Dominance with $500M Funding Boost
Seeking Alpha2 days ago
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Rivos AI Chip Startup Aims to Disrupt Nvidia's Dominance with $500M Funding Boost

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Summary:

  • Rivos is seeking $500M in funding to challenge Nvidia's dominance in AI chips

  • The startup focuses on AI inference GPUs, a market expected to grow significantly by 2030

  • Backed by Intel's CEO Lip-Bu Tan, Rivos aims for a $2B valuation

  • Plans to start mass production by 2026, with a prototype already in trial at TSM

  • CEO Puneet Kumar highlights cost efficiency as a key competitive advantage

Rivos, an AI-focused semiconductor startup with backing from Intel's CEO Lip-Bu Tan, is on a mission to challenge Nvidia's supremacy in the GPU market. The company is currently seeking up to $500M in a new funding round, which could elevate its total funding to nearly $900M and push its valuation beyond $2B.

The Ambitious Plan

Rivos is designing graphics processing units (GPUs) specifically for AI inference tasks, which are expected to dominate 60-70% of all AI workloads by 2030. The startup's goal is to create power-efficient, high-performance, and secure server solutions based on the RISC-V architecture.

Current Progress

Although Rivos hasn't mass-produced a chip yet, it has delivered a prototype to Taiwan Semiconductor Manufacturing (TSM) for trial production. The company aims to start mass production by 2026, potentially carving out a niche in a market heavily dominated by Nvidia.

Leadership and Backing

Lip-Bu Tan, Intel's CEO, is not just a backer but also the founding chairman of Rivos. The startup completed a $250M fundraising round last year, signaling strong investor confidence.

Competitive Edge

"We can target potentially smaller installations where Nvidia might seem like an overkill from a cost perspective," said Rivos co-founder and CEO Puneet Kumar. Kumar, a former employee of a chip design firm acquired by Apple, brings valuable expertise to the table.

Legal Battles and Settlements

Rivos faced legal challenges from Apple over alleged theft of trade secrets when Kumar left to found the startup. However, the two companies settled their disputes in early 2024, allowing Rivos to focus on its ambitious goals.

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