Nuvacore, a six-month-old microchip startup without a product, is raising hundreds of millions of dollars at a valuation of about $2.5 billion to create a new central processor for data centers. The demand for central processors is increasing due to the need for data-crunching capacity to support AI applications like chatbots. This valuation has not been previously reported, and while Nuvacore aims to raise over $200 million, the details of the funding round may change.
Intel and AMD, which have long held the data center CPU market using x86 technology, face competition from companies using Arm’s technology, found in custom CPUs by Amazon and Microsoft. Nuvacore plans to implement a unique design approach by establishing the core function of the chip before deciding on a specific architecture. This approach will let engineers bypass constraints tied to established architectures like Intel’s x86 or Arm, focusing on optimizing designs for common data center and AI tasks.
Founded by Gerard Williams, John Bruno, and Ram Srinivasan, Nuvacore previously secured seed funding from Sequoia Capital. The startup reflects a trend of young chip companies achieving high valuations before product release as investor interest in AI hardware grows. In 2026, semiconductor startups have already attracted more than $10.7 billion, exceeding the total amount raised in all of 2025. Recent reports indicate high demand for chips, with both Intel and AMD experiencing significant sales increases this year.
With information from Reuters
