AI Chip Startup Etched Raises $500 Million to Take on Nvidia

AI chip startup Etched raised about $500 million in a new funding round, according to people familiar with the matter, part of an effort to compete with Nvidia Corp. in the booming market for artificial intelligence processors.

The round, which was led by investment firm Stripes and includes participation from billionaire entrepreneur Peter Thiel, valued the company at $5 billion, said the people, who asked not to be identified because the agreement hasn’t been announced. Positive Sum and Ribbit Capital also invested, they said.

Peter Thiel

Photographer: Eva Marie Uzcategui/Bloomberg

Etched has now raised a total of almost $1 billion, one of the ...