Rivos, a semiconductor startup based in California, plans to raise between $400 million and $500 million in fresh capital. The company aims for a valuation of more than $2 billion. This goal shows how serious Rivos feels about taking on large competitors like NVIDIA and AMD in the AI hardware market.
Lip-Bu Tan, the chief executive of Intel, supports the company and plays a key role as an investor. His involvement brings credibility and trust to Rivos’ fundraising effort. If the company secures this funding, it will have close to $900 million in total investments since it started. This money will help Rivos build and scale its chip production, hire more experts, and expand its software and developer tools.
Building GPUs for the AI era
Rivos designs graphics processing units (GPUs) that focus on artificial intelligence workloads. The team has finished the physical design of its GPU and reports strong performance in tests. The company uses the RISC-V open-source instruction set as the base for its chips. This approach gives Rivos more control over the design and allows more customization than using proprietary technologies like Arm or x86.
The company wants its GPUs to deliver high performance while using less energy. This design goal makes them suitable for data centers, where large-scale AI training and inference require both speed and power efficiency. With demand for AI processing growing rapidly, Rivos sees a huge market opportunity.
Making it easy to switch from NVIDIA
One of the biggest challenges in competing with NVIDIA is the software lock-in created by NVIDIA’s CUDA platform. Most AI developers write their programs using CUDA, which only runs on NVIDIA hardware.
Rivos plans to overcome this by creating software that translates CUDA code to run on Rivos GPUs. This translation tool means that developers will not need to rewrite their code to switch hardware. It could save companies time and money, making Rivos a more attractive option. This strategy also lowers the risk for customers who want to test Rivos’ hardware without committing to a full migration.
Partnering with a major manufacturer
Rivos is close to signing a partnership with a large semiconductor manufacturer. This partnership will allow the company to move from design to large-scale production more quickly. Working with an experienced manufacturing partner also helps ensure quality, reduces production delays, and strengthens Rivos’ credibility with potential customers.
The AI hardware market is booming
The timing of Rivos’ move fits well with market conditions. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chip foundry, expects 30% revenue growth in 2025. This growth comes from heavy investment in data centers by technology companies worldwide.
Industry forecasts predict that the AI GPU market could grow to $352.5 billion by 2030. Companies that enter the market now and build strong positions could capture large market shares in the years ahead.
Competition remains strong
NVIDIA currently dominates the AI GPU market. Analysts remain confident in its future, with most rating the company’s stock as a strong buy. AMD holds a smaller share of the market and has a more modest “moderate buy” rating from analysts.
Investors expect big moves in NVIDIA’s share price when the company reports its quarterly earnings on August 27. Options traders are preparing for significant volatility, which shows how much attention the market pays to NVIDIA’s performance.
Geopolitics adds pressure
NVIDIA and AMD face growing challenges from international trade rules. Both companies must send 15% of their China-related AI chip revenue to the United States government in exchange for export licenses. Some legal experts question whether this rule conflicts with constitutional limits on export taxes.
These added costs could make alternatives like Rivos more appealing to customers, especially those who operate outside China and want to avoid export restrictions.
Why Rivos could succeed
Focused design for AI
Rivos builds GPUs specifically for AI workloads. By using RISC-V and avoiding unnecessary features, the company can offer more efficient, specialized chips.
Seamless software transition
By translating CUDA code, Rivos removes one of the biggest hurdles for customers who want to leave NVIDIA’s ecosystem.
Strong investor backing
Support from industry leaders and experienced investors gives Rivos both funding and strategic guidance.
Manufacturing partnerships
A deal with a major chip manufacturer will help Rivos deliver products faster and at larger volumes.
Market timing
Rising demand for AI hardware creates an opening for new players, especially those offering cost savings and compatibility.
Challenges ahead
Execution risk
Rivos must deliver real-world performance that matches or beats NVIDIA and AMD. It must also ensure that its CUDA translation software works reliably for complex workloads.
Capital demands
Raising up to $500 million will require strong investor confidence. Meeting performance and delivery goals will influence future fundraising efforts.
Competitive response
If Rivos starts gaining customers, NVIDIA could cut prices, improve its software tools, or offer incentives to keep clients loyal.
Regulatory uncertainty
Trade restrictions, export rules, or changes in chip licensing could affect Rivos’ plans.
What to watch next
- Funding results: The final amount raised and the valuation achieved will show how much belief investors have in Rivos’ potential.
- Partnership announcement: A confirmed manufacturing partner will signal that Rivos is ready for mass production.
- Performance data: Public benchmarks and customer trials will prove whether Rivos can compete with NVIDIA and AMD.
- Market reaction: Moves from competitors could show that Rivos is making an impact.
Conclusion
Rivos is making a bold move in a market dominated by giants. The company’s plan to raise up to $500 million, build AI-specific GPUs, and offer software that makes switching from NVIDIA easy gives it a strong foundation. Support from influential investors, progress in chip design, and the possibility of a major manufacturing partnership all increase its chances of success.
However, the road ahead will demand flawless execution, careful navigation of global trade issues, and the ability to adapt quickly to competitor responses. If Rivos meets these challenges, it could emerge as one of the first real challengers to NVIDIA’s dominance in AI GPUs.
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