Etched, the AI chip startup, is reportedly weighing offers that would value it at $40 billion or more, about double the $21 billion it was priced at after a $700 million round announced in September. Nothing has closed. TechCrunch reported on 5 October, citing people familiar with the company, that the bids run from $40 billion, offered by top-tier investors, up to $50 billion from less familiar backers, according to one of those people. Etched declined to comment.
A valuation is the price investors put on the whole company, so a higher one means each dollar invested buys a smaller slice. TechCrunch notes the talks are early and the terms of any deal may change.
The speed makes sense given what Etched is building. It is assembling complete AI hardware systems around its own proprietary chips, which means paying for design, manufacturing, and the machines housing them. That is one of the costliest routes in the industry. One person told TechCrunch that a round the size of the last one could give Etched up to 3.5 years of runway.
Until someone signs, $40 billion is an offer on the table, and the number can still move.
Reported by Marina Temkin for TechCrunch, published 5 October 2026.
