MatX Raises $500M Series B to Challenge Nvidia with 10x Faster AI Chips for LLMs

AI chip startup MatX announced a massive $500 million Series B funding round aimed at disrupting Nvidia's dominance in the AI hardware market.

The round was led by Jane Street and Situational Awareness, the fund from ex-OpenAI researcher Leopold Aschenbrenner, with backing from Marvell Technology, Spark Capital, and Stripe co-founders Patrick and John Collison.

Founders' Expertise from Google TPUs

MatX was co-founded in 2023 by Reiner Pope, who led AI software for Google's TPUs, and Mike Gunter, a former TPU hardware designer.

The company previously secured about $100 million in Series A funding in 2024, valuing it at over $300 million.

10x Performance Edge Over Nvidia GPUs

MatX's processors are engineered to deliver 10 times better performance in training large language models and inference compared to Nvidia's GPUs.

Chips will be manufactured by TSMC, with initial shipments slated for 2027.

Market Impact and Competition

This funding positions MatX as a serious contender in the booming AI chip sector, potentially lowering costs for AI developers worldwide.

Closest rival Etched recently raised $500 million at a $5 billion valuation, highlighting intense investor interest in Nvidia alternatives.

By leveraging founders' TPU heritage, MatX aims to accelerate the future of efficient AI training amid exploding demand.

The investment wave signals a shifting landscape where specialized AI silicon could redefine computational efficiency.