Amid a booming AI hardware market, US startup Rivos seeks up to $500 million to launch GPUs compatible with NVIDIA’s CUDA, aiming to challenge industry leaders.
Rivos, a semiconductor startup focused on artificial intelligence (AI), is seeking to raise between $400 million and $500 million in fresh funding, according to a report by The Information. The company, backed by Intel chief executive Lip-Bu Tan, is aiming for a valuation exceeding $2 billion and is reportedly close to securing a partnership with a major semiconductor manufacturer.
The California-based firm is developing a graphics processing unit (GPU) tailored for AI models and has completed its physical design with encouraging performance results.
A key feature of Rivos’ approach is software designed to translate NVIDIA’s CUDA code for use on Rivos chips. This could make it easier for customers to transition from NVIDIA hardware, potentially reducing costs and broadening adoption.
The funding effort comes amid rapid expansion in the AI hardware market. Taiwan Semiconductor Manufacturing Company (TSMC) has forecast 30% revenue growth in 2025, supported by large-scale data centre investments from global technology firms. Market projections suggest the AI GPU sector could reach $352.5 billion by 2030.
NVIDIA remains the market leader, with strong analyst support: 38 of 45 analysts currently rate its stock a ‘strong buy.’ AMD holds a ‘moderate buy’ consensus, with a price target about 6% above current trading levels.
NVIDIA is scheduled to report quarterly earnings on 27 August, with options markets anticipating significant share price volatility.
Geopolitical factors are also influencing the sector. Both NVIDIA and AMD face a requirement to remit 15% of China-related AI chip revenue to the US government in exchange for export licences. Legal experts have questioned whether this could conflict with constitutional restrictions on export taxes.
Despite competitive and regulatory pressures, Rivos’ focus on AI-specific GPU design and software compatibility with existing industry standards could position it as a viable challenger to established players.
