Broadcom in Talks for $60 Billion AI Chip Financing

Nuvacore, a six-month-old semiconductor startup backed by Sequoia Capital, is seeking to raise hundreds of millions of dollars at a valuation of approximately $2.5 billion, Reuters reported exclusively on Friday, citing two people familiar with the fundraising. The San Jose-based company is developing a central processing unit designed for data centers, targeting growing demand for computing infrastructure supporting artificial intelligence applications. Nuvacore has yet to release a product, and its latest funding round remains open, with the final valuation and amount raised subject to change. The Information previously reported that the startup was seeking at least $200 million, but the proposed $2.5 billion valuation had not been disclosed. Founded by semiconductor engineers Gerard Williams, John Bruno and Ram Srinivasan, Nuvacore plans to design its processor's core functionality before selecting an architecture, potentially avoiding limitations associated with Intel and Advanced Micro Devices' x86 technology or Arm-based designs. Williams previously worked at Apple and founded Nuvia, which Qualcomm acquired for $1.4 billion in 2021. Nuvacore declined to comment on the fundraising, Reuters reported.

Nvidia is set to invest in d-Matrix, a maker of artificial intelligence server chips, The Information reported, citing three people with knowledge of the deal. The investment is part of Nvidia's initiative to make its technology and chips compatible with those of other designers, the outlet added. Nvidia has struck similar deals with Marvell Technology, Intel, and Amazon, among others. Nvidia did not immediately respond to a request for comment from Seeking Alpha.

Marvell Technology raised its 2028 revenue target to $20 billion at its investor day, a figure set against $9.45 billion of trailing revenue. The company reported revenue growth of 36.50% in the most recent quarter and earnings growth of 58.10%, with a gross margin of 52.22%. Net margin of 27.93% sits above an operating margin of 16.68%, and free cash flow of $1.72 billion came in below $2.64 billion of reported net income. Marvell traded at around $285 on October 7 and is worth $255.84 billion, with $3.93 billion of cash and debt to equity of 28.53%. The stock was held by 96 hedge funds with a combined stake value of about $4.58 billion at the end of Q2 2026, up from 79 hedge fund holders with around $2.41 billion in the previous quarter.

Intel Corp. CEO Lip-Bu Tan said the company will continue working with Elon Musk on the Terafab semiconductor project, telling Bloomberg ahead of an event in Tokyo marking the U.S. company's 50th year of operations in Japan that Intel would keep its involvement in the effort. The comments follow a decline in Intel's stock after Musk on Saturday confirmed early-stage discussions with Taiwan Semiconductor Manufacturing Co. Ltd. about a potential role in the planned Texas-based Terafab AI chip complex. On Wednesday, Musk responded to Tesla expert Herbert Ong and stated that his companies will build and run the fab, saying there should be zero doubt about that and that TSMC might sublease part of the Terafab if it wants, but nothing more than that. In April, Intel said it was working with Space Exploration Technologies Corp. and Tesla, Inc. on Terafab, with its chip design, manufacturing and advanced packaging capabilities enabling the project's goal of producing 1 terawatt of computing capacity for AI and robotics per year. The possible involvement of Taiwan Semiconductor has raised questions about the degree of Intel's involvement in the process.