EXCLUSIVE: Positron raises $230M Series B to take on Nvidia’s AI chips

Positron, a semiconductor startup, has successfully raised $230 million in Series B funding, as confirmed by sources familiar with the situation. This funding is aimed at accelerating the rollout of its high-speed memory chips, which are essential for powering AI applications. The funding round saw significant participation from investors, including the Qatar Investment Authority (QIA), the sovereign wealth fund of Qatar. QIA has been increasingly concentrating on developing AI infrastructure, indicating a strategic pivot towards enhancing the nation's technological capabilities. The timing of Positron’s funding is noteworthy, as major AI and hyperscale companies are seeking alternatives to Nvidia, the current leader in the AI chip market. Among them is OpenAI, a significant customer of Nvidia, which is reportedly exploring other options due to dissatisfaction with recent chip offerings. Qatar's investment strategy is also noteworthy; the country is actively working on its own AI infrastructure, a focus highlighted during the recent Web Summit Qatar in Doha. By positioning itself as a competitive player in the global AI landscape, Qatar is fostering interest in companies like Positron. This initiative is further bolstered by a $20 billion joint venture in AI infrastructure with Brookfield Asset Management, announced just last month. With this latest round of funding, Positron has raised a total of over $300 million since its inception three years ago. Last year, the startup secured $75 million from various investors, including Valor Equity Partners and DFJ Growth. Positron claims that its inaugural chip, named Atlas, manufactured in Arizona, can deliver performance comparable to Nvidia’s H100 GPUs while consuming less than one-third of the energy. Focusing on inference rather than the training of large language models, Positron is tapping into the growing demand for hardware capable of executing AI models in real-world scenarios. Reports suggest that in addition to its memory functionalities, Positron’s chips excel in high-frequency and video processing tasks, making them versatile contenders in the evolving AI market. TechCrunch has reached out to Positron for further details on their advancements.