Fractile raises $720 million to develop AI chips and systems

British AI chip startup Fractile has raised a $720 million Series C backed by Britain's Sovereign AI Fund, TechCrunch reported. Thrive Capital, Founders Fund, Lightspeed Venture Partners and Redpoint led the round. The British government put the valuation at over £5 billion. Fractile combines chip development with a machine learning compiler designed to speed model execution. Its hardware approach stacks DRAM memory on top of each chip to address constraints in running demanding AI models. CEO Walter Goodwin said the funding would enable Fractile to ship its first chips and systems next year, while acknowledging substantial work remains.