UK AI Chip Startup Fractile Completes £577M Series C Following Reported $250M Anthropic Order
London-based AI inference chip startup Fractile has raised £577 million in Series C preferred shares, according to UK Companies House filings. This follows a Bloomberg report of an initial $250 million chip order from Anthropic. The company has not yet shipped production chips and expects data center deployments in 2027.
According to filings with the UK's Companies House, London-based AI chip startup Fractile has allocated £577 million in Series C preferred shares since September. This raise significantly exceeds its $220 million Series B completed five months prior.
Founded in 2022 by Walter Goodwin and Yuhang Song, Fractile designs chips specifically for AI inference. Unlike traditional architectures that move data between separate memory and processors, Fractile uses near-memory computing to keep data adjacent to the transistors performing calculations. The company aims to increase processing speeds for long AI workloads from approximately 40 tokens per second to 1,200 tokens per second.
The funding comes amid reports of early commercial interest. Bloomberg reported that Fractile agreed to an initial deal to sell approximately $250 million worth of chips to Anthropic, with both parties interested in expanding the agreement. However, the hardware is not expected to be deployed in data centers until 2027.
Despite securing substantial capital and reported customer commitments, Fractile has not yet delivered a production chip and has no disclosed revenue. In a market driven by compute scarcity, investors appear willing to fund unproven technical approaches at high valuations. Fractile's implied valuation sits between recent peers Olix ($3.3 billion) and Etched ($21 billion), but unlike Etched, which has paying customers, Fractile faces significant execution risk in translating its architecture into working silicon.