- Silicon Valley’s artificial intelligence (AI) start-up SambaNova Systems raked $676 million in a SoftBank Group Corp’s (OTC: SFTBY) (OTC: SFTBF) Vision Fund 2 led funding round, Reuters reports.
- The chipmaker reached a total funding of $1 billion at a valuation of over $5 billion, making it the third biggest venture capital chip deal in the last twenty years.
- The recent technology-focused investment, including semiconductors, marks a pronounced shift from Silicon Valley’s decade-long focus on software, social media, and the internet. The global venture capitalists have invested $7.4 billion in technology, including semiconductors, in 2020.
- SambaNova utilized chips manufactured by Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) for server and AI software building, leased out to companies for a subscription fee.
- Interestingly, SambaNova developed its chip architecture. The company had formed a production capacity arrangement with TSM last year to protect itself from the global chip crisis.
- Rodrigo Liang and Stanford University professors Kunle Olukotun and Chris Ré co-founded SambaNova in 2017.
- The latest funding round also involved new investors Temasek and the Government of Singapore Investment Corp. The existing investors included BlackRock (NYSE: BLK), Intel Capital (NASDAQ: INTC), Google Ventures (NASDAQ: GOOGL) (NASDAQ: GOOGL), and Walden International.
- price action: SFTBY shares traded higher by 0.06% at $46.475 on the last check Tuesday.
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Bristol Stock – SOFT(BA)NK CORP ORD (SFTBF), SOFT(BA)NK CP UNSP ADR (SFTBY) – AI Chip Maker SambaNova Rakes $676M At $5B Valuation In SoftBank Led Fundraise: Reuters
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