CAMBRIDGE, UK: Artificial intelligence startup CuspAI has secured a $2.6 billion valuation after raising $450 million in a Series B funding round, attracting backing from prominent technology investors as demand for next-generation semiconductor materials continues to grow.
Founded in 2024 by Dr. Chad Edwards and Professor Max Welling, the Cambridge-based company uses AI to discover advanced materials that could improve the performance and efficiency of future computer chips.
AI targets next-generation chip materials
CuspAI is applying artificial intelligence to identify new materials for the semiconductor industry, where rising demand for AI computing has increased pressure on critical minerals such as gallium, iridium and tantalum.
These materials are essential for manufacturing advanced chips and powering large-scale data centres. However, growing global demand has pushed prices higher and raised concerns about future supply.
The International Energy Agency (IEA) has warned that data centre demand for gallium could exceed current supply within the next four years.
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$450 million Series B funding
The company raised $450 million in a Series B funding round on July 20, bringing its total funding to more than $580 million.
The investment round was co-led by Kleiner Perkins and NEA, with participation from Bezos Expeditions, AMD Ventures, and the UK Government’s Sovereign AI Venture Fund.
Shift from climate tech to semiconductors
CuspAI initially focused on discovering materials for carbon capture and water purification technologies.
However, the rapid expansion of AI infrastructure and increasing demand for powerful computing hardware prompted the company to expand into semiconductor materials, aiming to help address supply constraints facing the AI industry.
