Fractile raises $720M Series C for stacked-DRAM AI chips

British AI chip startup Fractile has raised a $720 million Series C, led by Thrive Capital, Founders Fund, Lightspeed Venture Partners and Redpoint, with backing from the UK's Sovereign AI Fund. The British government cited a valuation of "over £5 billion," possibly around $7 billion, a figure also reported by the Financial Times and a Reuters source. Fractile pairs its chips with a machine learning compiler and, after a pivot, stacks DRAM on top of each chip to try to bypass the usual memory-versus-capacity trade-off, which the company sees as increasingly costly for agentic AI. CEO Walter Goodwin said the funding will let the startup ship its first chips and systems next year.

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