US-based AI chip startup SambaNova announced Wednesday a valuation of $11 billion following a $1 billion fundraising round revealed at the Raise Summit in Paris. The new valuation underscores rising demand for its focus on AI inference, where models respond to routine user queries, compared with the heavy expense of training models initially. Established in 2017 and supported by Intel, the California company plans to direct the funds toward further development of chips, systems, software and complete AI setups. Demand for AI processing has risen sharply since ChatGPT launched three years ago and accelerated near the start of 2026 with wider adoption of AI agents. These systems handle tasks such as coding and email drafting via natural language commands but require extensive computing resources from data centers equipped with powerful semiconductors. Nvidia currently supplies most of these chips and ranks as the world’s largest firm by market value. Rivals including SambaNova aim to compete by offering chips optimized for efficient inference instead of raw power.
