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Eye On AI: Despite Need, US-Based AI Chipmakers Not Seeing Investor Love

Feb 08, 2024 - news.crunchbase.com
Astera Labs, a data center startup based in Santa Clara, California, is reportedly preparing for a potential initial public offering (IPO) in March. The company, which provides data and memory connectivity solutions for major chipmakers like Intel and Taiwan Semiconductor Manufacturing Co, recently raised a $150 million Series D round led by Fidelity Management and Research, valuing it at nearly $3.2 billion. However, despite this success, the broader market for semiconductor startups has seen a decline in funding, with investment falling from over $2 billion in nearly 80 deals in 2022 to just $1.2 billion in 64 deals in 2023.

In other AI news, Ambience Healthcare, a San Francisco-based startup that has developed an AI operating system for healthcare organizations, raised a $70 million Series B round co-led by OpenAI Startup Fund and Kleiner Perkins. Meanwhile, Jack Altman, through his ALT Capital firm, has raised a $150 million venture fund to invest in early-stage startups, with a focus on enterprise software startups, including those using artificial intelligence.

Key takeaways:

  • Data center startup Astera Labs is preparing for a potential March initial public offering, after raising a $150 million Series D led by Fidelity Management and Research, valuing the company at nearly $3.2 billion.
  • The market for funding for U.S.-based semiconductor startups seemed to be picking up in 2022, but fell to only $1.2 billion in 64 deals last year.
  • Ambience Healthcare, a San Francisco-based startup that has created an AI operating system for health care organizations, raised a $70 million Series B co-led by OpenAI Startup Fund and Kleiner Perkins.
  • Jack Altman has raised a $150 million venture fund to invest in early-stage startups through his ALT Capital firm, with a focus on enterprise software startups, including those using artificial intelligence.
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