Frore Systems, an eight-year-old semiconductor startup specializing in cooling solutions, officially announced on Monday that it has successfully raised $143 million in a Series D funding round, spearheaded by MVP Ventures. This latest investment places the company’s valuation at an impressive $1.64 billion.
With this new capital infusion, Frore’s total funding now stands at $340 million, as reported by the company. While Frore does not manufacture semiconductor chips itself, it develops advanced liquid cooling systems designed for them. Founded by two former Qualcomm engineers, the company initially focused on creating air-cooling technology for mobile phones and other compact, fanless electronic devices.
The company’s strategic pivot towards chip cooling was reportedly influenced by Nvidia CEO Jensen Huang. Approximately two years ago, after a demonstration of Frore’s technology, Huang suggested they explore liquid cooling solutions, recognizing their increasing importance for AI chips and systems, as Bloomberg detailed. Following this advice, Frore developed products compatible with various Nvidia chips and boards, and has also created solutions for Qualcomm and AMD.
The realm of AI semiconductors has become a highly attractive sector for investors. Other recent unicorns in this space include Nvidia competitor Positron, which reached a $1 billion valuation in February, and Recursive Intelligence, which secured a $4 billion valuation shortly after its inception. Additionally, Eridu recently launched with a substantial $200 million Series A round (though its valuation was not disclosed) to develop new AI networking chips.
Notable investors participating in Frore’s latest funding round include Fidelity, Mayfield, Addition, Qualcomm Ventures, and Alumni Ventures, among others.