Tencent-backed AI chip Enflame raises $274M

Enflame, a Chinese AI chip startup, backed by Tencent, has recently gained significant attention.

Here's why this budding AI chipmaker is causing such a stir:

• Funding Round: Enflame has impressively secured 2 billion yuan ($273.68M) in funding, showcasing the strong interest and confidence from an array of top-tier investors.

• Investors: The company's fundraising campaign was bolstered by contributions from funds associated with a government authority in Shanghai including funds supported by the Shanghai International Group. This suggests Enflame's expanding influence and strategic partnerships.

• AI Growth: Amidst the burgeoning growth of generative AI - exemplified by OpenAI's ChatGPT - investors are showing increasing interest in infrastructure-level AI opportunities such as AI chips.

Tencent, not only a collaborator with Enflame on the AI chip, Zixiao, but also a participant in the most recent investment round, further reinforces Enflame's robust backing and promising future.

With its recent successful funding round and strategic alliances, Enflame is emerging as a player in the AI infrastructure landscape.