Nvidia-backed SiFive hits $3.65 billion valuation for open AI chips

At a glance:\n- SiFive raised $400 million in an oversubscribed round, valuing the company at $3.65 billion.\n- Nvidia joined the funding alongside a mix of VCs, PE, and hedge funds.\n- The deal positions SiFive’s RISC‑V open‑source CPU designs to compete in AI data‑center markets.\n\n## Nvidia’s strategic bet on open‑source CPUs\nNvidia’s participation signals a shift in its strategy to diversify beyond GPUs. By backing SiFive, the chip giant gains a partner that can supply CPUs built on the RISC‑V architecture, which is independent of Intel’s x86 and ARM. This could broaden Nvidia’s “AI factory” ecosystem, allowing more varied hardware to run its CUDA software.\n\n## SiFive’s business model and history\nSiFive was founded in 2015 by UC Berkeley engineers who pioneered an open‑source chip design. The company licenses its RISC‑V designs to manufacturers, mirroring Arm’s earlier model. Unlike Arm’s recent move to produce a chip, SiFive has not sold any silicon itself, focusing instead on design IP.\n\n## Investor lineup and funding timeline\nThe $400 million round was led by Atreides Management, founded by former Fidelity investor Gavin Baker. Other participants included Apollo Global Management, D1 Capital Partners, Point72 Turion, T. Rowe Price, Sutter Hill Ventures, and several hedge funds. SiFive’s last round, in March 2022, raised $175 million at a $2.33 billion pre‑money valuation led by Coatue Management, with Intel Capital, Qualcomm Ventures, and Aramco Ventures also investing.\n\n## RISC‑V’s entry into AI data‑center CPUs\nHistorically used for embedded systems, RISC‑V is now being positioned for high‑performance AI workloads. SiFive’s new capital will help develop CPUs that integrate with Nvidia’s CUDA and NVLink Fusion rack‑server system, enabling different CPUs to plug into Nvidia’s GPU‑centric infrastructure.\n\n## Competitive implications for Intel and AMD\nIntel and AMD have been building CPUs to compete with Nvidia’s GPUs. SiFive offers an alternative path: open‑source, neutral designs that can be adapted by any manufacturer. Nvidia’s backing may accelerate SiFive’s reach into data‑center markets, potentially reshaping the CPU‑GPU balance in AI workloads.\n\n## Looking ahead\nWith the infusion of $400 million, SiFive can scale its design team, expand its product portfolio, and deepen partnerships with major cloud providers. Observers will watch how quickly the company can deliver production‑ready RISC‑V CPUs that meet the performance and power targets required by AI data‑center operators.