Fractile

London-headquartered AI chip startup Fractile has secured a $220 million (£162.8 million) Series B funding round co-led by Accel, Factorial Funds, and Founders Fund.

Summary of transaction details:

• Value: £162.8 million ($220 million).
• Sector: DeepTech & AI / Semiconductors.
• Advisor: None mentioned.
• Key Entities: Target: Fractile; Lead Investors: Accel, Factorial Funds, Founders Fund; Participating Investors: Conviction, Gigascale, O1A, Felicis, Buckley Ventures, 8VC, Kindred Capital, NATO Innovation Fund.
• Location: London (HQ) with a new £100m facility in Bristol, UK.

Note: Founded in 2022 by AI PhD Walter Goodwin, Fractile is tackling the "memory bandwidth" bottleneck that currently limits AI inference speeds. While today's frontier models often run at 40 tokens per second—taking a month to complete 100 million tokens—Fractile’s moonshot architecture aims for 1,200 tokens per second, compressing a month of work into a single day. This funding, which follows a 2024 stealth exit, will accelerate the delivery of its first chips and systems. The company plans to invest £100m into a new hardware engineering facility and software testing lab in Bristol while expanding its presence in San Francisco and Taiwan.