AI inference chip Fractile raises $720 million… valued at $7 billion

UK AI chip startup Fractile raised $720 million in a Series C round at a post-money valuation of $7 billion, according to investor Balderton, with Thrive, Founders Fund, Lightspeed and Redpoint co-leading and Balderton also participating. The UK government said its Sovereign AI Venture Fund and the British Business Bank joined the round, which it characterized as exceeding £500 million at a valuation above £5 billion, without disclosing individual commitments. The deal marks one of Europe's largest recent AI semiconductor financings, underscoring investor appetite for chips designed to speed up AI inference as demand shifts from training toward deployment. Watch for how Fractile deploys the capital into silicon development and customer engagements, and whether the sovereign-fund participation signals broader UK backing for domestic AI hardware champions.