Microsoft-backed d-Matrix valued at USD2b in Series C
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The news: California-based AI chip startup d-Matrix has gained a USD2 billion ($3.06 billion) valuation in its USD275 million Series C funding round.
The numbers: The company said that the new round brings total raised to date to USD450 million.
The context: d-Matrix said the oversubscribed round was co-led by a consortium including BullhoundCapital, Triatomic Capital, and Temasek. The round also includes new participation from the Qatar Investment Authority (QIA) and EDBI, alongside follow-on participation from M12, Microsoft’s Venture Fund, as well as Nautilus Venture Partners, Industry Ventures, and Mirae Asset.
The company said it plans to use the new funding to accelerate production and distribution of its hardware to clients and for staffing customer support teams. .
d-Matrix, founded in 2019 and with offices in Toronto, Sydney, Bangalore and Belgrade, builds accelerator chips for inference which helps run AI models once they have been built by rapidly handling a large number of queries.
Morgan Stanley served as the exclusive placement agent, and Wilson Sonsini Goodrich & Rosati served as legal counsel to d-Matrix.
What they said: “The explosion in AI inference demand shows us that efficiency and scalability can be key contributors to revenue capture and profitability for hyperscalers and AI factories,” said Michael Stewart, managing partner at M12, Microsoft’s Venture Fund. “d-Matrix is the first AI chip startup to address contemporary unit economics in LLM inference for models of a range of sizes that are growing the fastest, with differentiated elements in the in-memory product architecture that will sustain the TCO benefits with leading latency and throughput.”
The sources: d-Matrix press release, Bloomberg
