Nvidia welcomes challengers again! AI reasoning chip newcomer Positron plans to raise $750 million in financing, with its valuation doubling in five months to challenge $5 billion.

AI chip startup Positron is currently negotiating a two-stage financing of approximately $750 million, becoming one of many companies trying to challenge NVIDIA Corporation's market dominance. According to sources, the first stage of this financing round is expected to value the company at $3.5 billion, with the second stage potentially reaching around $5 billion. As negotiations are still ongoing, the sources have requested to remain anonymous. One source mentioned that Positron, which focuses on developing high-efficiency inference chips for running AI models, has received multiple investment term sheets. If this round of financing is successful, the valuation of this startup will more than double in just five months. Currently, investors' interest in AI chip and infrastructure startups continues to rise, especially favoring companies like Positron that specialize in the AI inference stage where AI models have completed training and are starting to respond to real-world input data. This financing negotiation is another recent example of rapid fundraising in stages by AI startups, reflecting the highly competitive nature of the tech field. However, the negotiations are still ongoing and the terms may still be subject to adjustments. Positron, based in Reno, Nevada, has declined to comment on this matter. Positron's strong lineup of investors includes Valor Equity Partners, Atreides Management, DFJ Growth, as well as Arm and the Qatar Investment Authority. This week, AI chip company SambaNova Systems Inc. announced a $1 billion financing round, valuing the company at $11 billion. It is worth noting that Intel Corporation had discussed acquiring SambaNova at a lower valuation last year. Another competitor of NVIDIA Corporation, Etched, recently raised $800 million in funding and signed a $1 billion sales contract. Similarly, Cerebras Systems Inc., which also focuses on AI inference chips, completed the largest IPO of the year in May. However, the company has faced difficulties navigating the uncertain market environment. Its stock price soared to $311.07 at one point but has since fallen below the IPO price, closing at $181.72 on Wednesday. Facing fierce competition, NVIDIA Corporation is also actively responding. In December last year, NVIDIA Corporation agreed to license inference chip technology from Groq and integrate it into their products.