Nvidia chip reseller Together AI hits US$1bn valuation
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The news: US startup Together AI, which resells access to Nvidia server chips, is raising over USD100 million ($154 million) in fresh funding, valuing the company at more than USD1 billion, The Information reported.
The numbers: Founded in 2022, Together AI has doubled its valuation from its previous funding round which closed four months ago. The startup is capitalising on global demand for Nvidia's graphics processing units (GPUs), a type of server chip effective in developing conversational artificial intelligence, generating more than USD30 million in annualised revenue.
The company helps AI developers access Nvidia server chips to train and tweak their AI models.
The context: Salesforce Ventures, an active investor in AI-related startups including Anthropic, Cohere and Hugging Face, plans to lead the round, with participation from hedge fund Coatue Management.
Surging demand for GPUs from big tech companies like OpenAI, Meta Platforms and Microsoft has driven a hike in the share price of Nvidia, which overtook Alphabet as the third largest US stock on Thursday AEDT. Other GPU resellers, such as Runpod and Replicate, have also benefited from the recent trend.
The Information reported that spokespeople for Together AI and Salesforce Ventures declined to comment on the raise, which has not yet closed.
The source: The Information
