Nvidia Competitor Rivos Secures Up To $500M for Advanced AI Chip Development

Santa Clara-based Rivos is raising between $400 million and $500 million from investors, a formidable Nvidia competitor, which could value the startup at over $2 billion. The company previously secured over $250 million from Intel Ventures and other institutional backers 18 months ago.

AI Chip Innovation and Market Strategy

Rivos develops an advanced AI chip. The company plans to manufacture its processor using Taiwan Semiconductor Manufacturing Co.'s three-nanometer node. This N3P edition is specifically optimized for data centers. Rivos aims to launch its chip as early as 2026.

The Rivos chip integrates a graphics processing unit and multiple central processing units. This design suggests competition with chips from Nvidia, including its upcoming Vera Rubin chip. Rivos utilizes the open-source RISC-V architecture, avoiding licensing fees associated with Arm Holdings. This strategic choice differentiates the Rivos AI chip.

Rivos' CPUs incorporate the new RVA23 Profile, a component the company helped develop. This technology enhances RISC-V's support for vector extensions, improving efficiency for AI models and data analytics. The processor features terabytes of memory, including both DRAM and faster HBM, crucial for AI accelerator performance.

Rivos will ship its silicon as part of servers, each containing multiple chips. On the software side, the company collaborates with Canonical to optimize Ubuntu for its hardware. As an Nvidia competitor, Rivos is also developing a tool to convert CUDA-based AI models, making transitions from Nvidia GPUs easier for customers.

The company is finalizing a deal to supply processors to a major chipmaker. This agreement also includes collaboration on future product development.

Lip-Bu Tan is the Chairman of the startup, the current CEO of Intel, and esteemed investor leading investor group Walden Catalyst.