Fractile Aims for $200m Funding Round
London-based AI chip maker Fractile is in talks to raise $200 million in funding at a $1 billion valuation. The discussions are reportedly with Accel and early backer Oxford Science Enterprises, as per a Financial Times report on March 31, 2026.
Details of the Funding Round
The company, founded in 2022, is known for its AI inference hardware and software solutions, including chips that claim to outperform Nvidia’s GPUs in terms of efficiency, speed, and cost. Fractile has previously raised $15 million in 2024 and an additional $22.5 million in February 2026 from the Nato Innovation Fund, Kindred Capital, and Oxford Science Enterprises.
Company Background
Fractile, founded by Walter Goodwin and Yuhang Song, is headquartered in London. The company focuses on developing advanced chips that are faster and cheaper than those offered by industry giant Nvidia. CEO Walter Goodwin continues to lead the company, while Yuhang Song, the former CTO, left in May 2024 to pursue other interests.
Market Context
This funding round is significant as it positions Fractile to expand its operations, including a new engineering facility in London and Bristol, with an investment of £100 million, as announced by the UK AI minister Kanishka Narayan. The move underscores the growing competition in the AI chip sector, with startups like Fractile challenging established players like Nvidia.
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Source: Sifted