Axelera secures new funding as the AI chip market intensifies

The AI chip market is witnessing a surge in interest and investment as demand for specialized chips to power generative AI models grows. SoftBank’s Masayoshi Son is reportedly aiming to raise $100 billion for a new chip initiative to compete with Nvidia, underscoring the intense competition in this space. At the same time, OpenAI is exploring partnerships with investment firms to launch its own AI chip venture.

In contrast to these high-profile initiatives, Axelera, a relatively low-profile AI chip startup, has quietly secured backing from major players like Samsung. Founded by Fabrizio Del Maffeo and colleagues from Imec and IBM researchers based in Zurich, Axelera specializes in AI chips designed for edge devices. This focus on edge computing enables Axelera to deliver high-performance, cost-efficient solutions tailored for sectors such as security, retail, automotive, and robotics.

Headquartered in the Netherlands, Axelera operates with a workforce of around 180 employees across offices in Belgium, Switzerland, Italy, and the U.K. The company’s hardware stack is characterized by its use of RISC-V instruction set architecture (ISA) and in-memory computing, which are critical for optimizing AI operations at the edge.

Axelera’s approach highlights the strategic importance of edge AI capabilities in various industries, leveraging specialized hardware to meet the growing demand for efficient, scalable AI solutions outside traditional data centers. As the AI chip market continues to evolve, startups like Axelera play a pivotal role in driving innovation and addressing specific market needs across diverse applications.