UK-Based Fractile Raises €649Mn in Series C Funding at $7 Billion Valuation

The startup will use the new funding to bring its AI inference hardware to market. The investment also values Fractile at €6.3 billion ($7 billion) after the funding round.

The round was co-led by Thrive Capital, Founders Fund, Lightspeed and Redpoint.

Several other investors also joined the round, including CapitalG, Dragoneer Investment Group, DST Global, Elad Gil, BlackRock, Bain Capital Ventures, T. Rowe Price, SV Angel, Sovereign AI, the British Business Bank, Shopify Ventures, Felicis, Gigascale Capital, 20VC and Balderton, along with existing investors.

Phil Chambers, Partner at Balderton, said: “Walter and the Fractile team made a bold bet back in 2022: that the real limit on frontier AI would be how fast it can produce useful outputs, and that the only way to fix that at scale was to rebuild the hardware itself. By stacking DRAM directly on top of logic, and owning every layer from silicon to systems, software and core ML research, they have built an architecture that delivers both speed and scale. That kind of full-stack ambition is rare for a chip company, and it makes Fractile one of the most exciting places in the world right now for engineers who want to work on AI’s hardest problems.”

Fractile was founded in 2022 by Walter Goodwin and Yuhang Song. The company is headquartered in London and also has operations in Bristol.

Walter Goodwin, who serves as the company's CEO, previously completed doctoral research in robotics and artificial intelligence at the University of Oxford.

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