AI chip developer Axelera has secured a fresh injection of capital, signaling investor confidence in the burgeoning AI chip market. The company closed a $68 million Series B funding round, bringing its total raised to $120 million.

This funding round highlights the intensifying competition in the AI chip space as companies race to develop specialized processors for artificial intelligence applications. Axelera aims to differentiate itself by offering not just the chip hardware but also the software tools needed to manage and deploy AI models on that hardware.

The new funds will fuel Axelera’s expansion into new markets ahead of the full production launch of their flagship Metis AI platform in the second half of 2024. Additionally, the company has set its sights on the data center chip market, with plans to invest in research and development of chips specifically designed for high-performance computing tasks.

According to Axelera CEO Del Maffeo, the Metis platform has already entered full production in the second quarter and will be delivered in volume by the third quarter. The company is also developing a new generation of products focused on computer vision, large language models, and large multimodal models. This new product line is expected to be unveiled later in 2024 and will enter full production in 2025.

This influx of capital positions Axelera to capitalize on the growing demand for AI chips. As various industries increasingly adopt AI technologies, the need for efficient and powerful hardware to run these applications is paramount. Axelera’s comprehensive approach, encompassing both hardware and software solutions, could prove to be a strategic advantage in this competitive landscape.