A 25-year-old entrepreneur, James Dacombe, founded the AI chip startup Olix in 2024. The company recently closed a $312 million funding round, pushing its post-money valuation to $3.3 billion. This represents a threefold increase from its valuation of over $1 billion just six months ago.
The funding round was led by New York-based investment firm Fundomo, with participation from Arm, owned by SoftBank, quantitative trading firm Hudson River Trading, and Netflix co-founder Reed Hastings. In an interview, Dacombe stated that the era of a single chip handling all AI tasks is over, and the industry is moving toward specialized division of labor. He pointed out that the economic value of delivering powerful large language model services to a massive user base at low cost and high speed is driving companies to adopt customized chips and a disaggregated architecture.
Olix's chip design does not rely on the most constrained semiconductor components currently in supply, including cutting-edge silicon wafers, high-bandwidth memory, and advanced packaging technology. The company now employs over 140 people globally, with offices in London, Bristol, Toronto, and Austin. Many of its staff come from major US technology companies and semiconductor firms.
The company plans to tape out its chip later this year, which is the final stage before design testing moves into manufacturing, with the first products expected to be delivered to customers next year. Dacombe noted that the pace of chip development has significantly accelerated since the last funding round, and emphasized that meeting deadlines is central to the company's culture and competitiveness, with a goal to become the fastest company in the industry from founding to tape-out.
Amid a surge in AI infrastructure investment, chip startups focused on alternatives to Nvidia's solutions continue to attract capital. In May, Bristol-based Fractile raised $220 million; in July, US startup Etched completed a $300 million funding round at a $10.3 billion valuation, with investors including Sequoia Capital and Andreessen Horowitz. SambaNova also secured $1 billion in funding led by General Atlantic, achieving a valuation of $11 billion.
Olix's key technological advantage lies in its "photonic interconnect" solution, which uses lasers to transmit data between large clusters of chips, offering higher speed and energy efficiency. Along with this funding round, the company has appointed Matt Briers, former CFO of UK fintech firm Wise, as its new CFO. During its development, Olix extensively used AI tools to accelerate compiler development, a achievement that became a key validation element for this funding round.
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