Another tech startup becomes a unicorn: Frore hits $1.64B

Eight-year-old semiconductor startup Frore Systems has raised $143 million Series D, led by MVP Ventures, at a cost of $1.64 billion, the company. he announced on Monday.

Frore has now raised $340 million, the company said. Frore doesn’t make chips ourselves; they create liquid cooling systems for them. Founded by two former Qualcomm engineers, the company’s technology was designed to provide fanless cooling technology for phones and other small devices.

The company’s focus on chips was inspired by Nvidia’s CEO Jensen Huang, who received a technology presentation about two years ago. Bloomberg said. Huang also suggested developing water-cooling systems, a new must-have for AI chips and machines. So they did, releasing products that work with many Nvidia chips and motherboards. The company has also developed products for Qualcomm and AMD.

AI semiconductors have become a hot investment area. Some new unicorns in the field include Nvidia competitor Positronwhich hit the $1 billion mark in February; Recursive Intelligence which made it worth $4 billion right out of the gate. Eridu has just launched, too, and $200 million Series A round (although it declined to disclose its calculations), to develop new AI chips.

Investors who have participated in Frore’s latest venture include Fidelity, Mayfield, Addition, Qualcomm Ventures, and Alumni Ventures, among others.