Sequoia-backed Nuvacore seeks $2.5B valuation pre-product

Six-month-old chip startup Nuvacore is raising hundreds of millions of dollars at a roughly $2.5 billion valuation, according to people familiar with the matter. The company, backed by Sequoia Capital, has not yet shipped a product.

Reuters first reported the round on Friday. Nuvacore is developing a central processor designed for data centers, though details about the architecture and target customers remain undisclosed. The company was founded earlier this year.

The valuation places Nuvacore in the same tier as Armadin, which secured a $2.5 billion valuation in a $255.5 million Series B round this month, and Instinct, an AI startup that raised $350 million at the same valuation in August. Both companies, however, have released products or at least public demos.

Nuvacore’s raise stands in contrast to Etched, which is reportedly fielding funding offers valuing the AI chip startup at $40 billion to $50 billion, up from a $21 billion round earlier this year. Etched, like Nuvacore, is also pre-revenue but has generated more public visibility around its technology.

The gap suggests investors are drawing sharper distinctions between general-purpose data-center chips and specialized AI accelerators. Nuvacore’s backers appear willing to bet on a broader market, even without a product in hand. What remains unclear is whether the company will secure the full amount it is targeting or adjust its valuation before closing.

Sources: reuters.com