Fractile has raised $720 million in a Series C ahead of the planned 2027 launch of its first commercial AI chip, the company told Reuters. The news agency reported a $7 billion valuation, citing a person involved in the deal.
The London- and Bristol-based company develops chips and systems for inference, the work a trained AI model does to produce an answer. Founder Walter Goodwin argues that the speed of moving data from memory limits how quickly models can generate the long sequences of intermediate steps needed for complex tasks.
The financing comes six months after a $220 million Series B announced on May 13, co-led by Accel, Factorial Funds and Founders Fund. The new round is more than three times that size. The earlier financing was intended to accelerate chip development and commercialization, according to the company statement reported by Data Center Dynamics.
Thrive Capital, Founders Fund, Lightspeed and Redpoint led the Series C, according to Reuters, with CapitalG also participating. The British government separately confirmed investment from its Sovereign AI Venture Fund and the British Business Bank, linking its backing to retaining chip expertise and more of the industry’s economic value in Britain.
In a May essay, Goodwin outlined a target of about 1,200 tokens of text per second for models working across very long contexts. His stated ambition was to compress a month of model output into roughly a day.