Samsung Backs AI Chip Rival to Nvidia With $230 Million Funding
Samsung has invested $231 million in Dutch AI chipmaker Euclyd as demand for alternatives to Nvidia GPUs rises. Euclyd has funded €200 million in a Series Funding to create AI inference processors that cut energy use and data-centre costs.
In a $231 million investment round, Samsung backed Dutch artificial intelligence chipmaker Euclyd. Contrasting with Nvidia's monopoly in GPUs, this development occurred during an upsurge in venture capital for GPU alternatives.
According to CEO Bernardo Kastrup's statement to a media house, the 200 million euro Series A round was co-led by Samsung, Somerset Capital Partners, Innovation Industries, and the Scaleup Europe Fund, which is managed by EQT. Euclyd, set to debut in 2024, is creating AI inference-specific chip systems with a memory architecture and processor that differ from the conventional GPU.
Euclyd Roadmap for Future Growth
According to Kastrup, unless the foundation of AI is rethought, its capabilities will be severely limited. In an interview with a media organisation, Kastrup said that artificial intelligence is laying the groundwork for national competitiveness, scientific advancement, and economic prosperity. Unless we drastically alter the underlying infrastructure, though, its potential will be severely limited, he added.
Although commercial-scale testing of Euclyd's systems is still in the works, the business claims that its chips will help bring down the soaring energy expenses and demands of AI data centres. Selling server racks to businesses for safe on-premises inference and licencing its chip designs to companies developing bespoke silicon are Euclyd's two revenue channels moving ahead. Besides financial aid, Kastrup mentioned other ways in which Samsung might assist Euclyd. Furthermore, he brought out the fact that the phone company is among the world's largest memory makers. They are highly knowledgeable in systems, have extensive experience with engineering, are well-versed in the supply chain, and boast an extensive network. By 2030, Euclyd hopes to have served thousands of business clients with its physical chip systems, which it plans to start distributing in 2028.
Cut Throat Competition Driving AI Growth
Capital is shifting toward novel computing architectures, as demonstrated by the €200 million round. The change was brought about by the rising power consumption and hardware costs of AI data centres. Although Nvidia is still the market leader, consumers are looking for specialised processors that may provide better inference economics.
By 2030, Euclyd hopes to have served thousands of business clients and will have deployed its first physical systems in 2028. The route toward manufacturing and commercialisation is strengthened by Samsung's sponsorship. Whether or not the company's architecture provides quantifiable benefits at scale will determine its competitiveness. The industry-leading speed and efficiency of OpenAI's first artificial intelligence chip, the Jalapeño, were disclosed in August. Also working on artificial intelligence chips are Google, Amazon Web Services, and Meta.
