Breaking the x86 and ARM Duopoly
SiFive’s products are based on RISC-V processor architecture — neither Intel’s x86 nor ARM. These two architectures currently almost completely monopolize the CPU supply feeding Nvidia GPU compute systems.
RISC-V is an open-source design that anyone can inspect, modify, and use. This contrasts sharply with x86’s closed proprietary model and ARM’s licensing approach. Previously RISC-V was mainly used in IoT devices and microcontrollers, but with this funding round, SiFive is targeting AI data center CPUs.
Why Nvidia Is Betting on a Company That’s Neither x86 nor ARM
Nvidia’s presence in this round carries a clear strategic motive. Nvidia doesn’t need another x86 or ARM CPU vendor — it needs more options.
SiFive’s chip designs can work with Nvidia’s CUDA software platform and NVLink Fusion systems. NVLink Fusion is a rack-server architecture that lets CPUs from different vendors connect to Nvidia’s “AI factories.” In other words, Nvidia is cultivating an open, neutral CPU supply source that frees its GPU ecosystem from dependence on Intel or ARM architecture choices.
This also explains why, as Intel and AMD scramble to compete with Nvidia’s GPUs, Nvidia is investing in an 11-year-old startup to help it build an alternative.
Business Model: Like ARM, But More Open
SiFive’s business model mirrors early ARM — licensing chip designs to customers who then modify them to fit their needs, while SiFive itself doesn’t manufacture chips.
SiFive is sticking to a fabless model, staying neutral — meaning it won’t compete with its downstream customers, making it more attractive to companies that want to customize their own CPUs.
$400M at a $3.65B Valuation
The round was led by Atreides Management, which also participated in Cerebras Systems’ $1B raise. Other investors include Apollo Global Management, D1 Capital Partners, Point72 Turion, T. Rowe Price, and Sutter Hill Ventures.
SiFive’s previous fundraising was in March 2022, when it raised $175M at a $2.33B valuation. Four years later, the valuation increase is roughly 56%. In the AI chip frenzy, that’s not dramatic — but the fact that this company went nearly four years without fresh capital and survived a technology validation period says something.
The AI Chip Battlefield Is Restructuring
Nvidia’s GPUs hold absolute dominance in AI training and inference. But the CPU side is different — Intel’s market share is eroding, ARM is gaining ground in data centers, and RISC-V is just getting started.
The funding SiFive just secured, plus Nvidia’s endorsement, gives RISC-V a serious shot at being taken seriously in AI data centers. Whether SiFive can produce CPU designs with competitive performance — enough to get major cloud providers and tech giants to adopt them — is the critical validation ahead.
Source
- Original: Nvidia-backed SiFive hits $3.65 billion valuation for open AI chips — Julie Bort, TechCrunch (2026-04-11)
