A Santa Clara chip startup that became a unicorn this summer may already be up for sale.
What was reported
Eliyan, which makes the high-speed links that let pieces of AI chips talk to each other, has told some investors in recent days that it received a takeover bid, The Information reported on Oct. 9, citing people familiar with the matter. According to Dealroom's summary of that report, the company has worked with an investment bank since the summer and is likely to aim for a valuation of about $3 billion.
The buyer has not been named. Arm, the SoftBank-owned chip designer and an existing Eliyan investor, held early talks about an acquisition but did not make a bid, and one person told The Information it would be unlikely to at that price. Eliyan and Arm declined to comment.
A fast climb
Eliyan closed a $145 million Series C on July 29 that valued it at $1 billion, Crypto Briefing reported. A $3 billion target would roughly triple that in about two months. It is a goal, not an agreed price.
Founded in 2021, the company has raised more than $250 million from backers including AMD, Cisco and Meta, as well as venture firms such as Tiger Global, according to Dealroom.
What it makes
Modern AI processors are increasingly built from several smaller pieces of silicon, called chiplets, packaged together with high-bandwidth memory. Moving data between those pieces fast enough is one of the main bottlenecks in AI hardware. Eliyan is building optical and electronic links meant to replace copper connections between chiplets and memory, Dealroom reported. Crypto Briefing noted the company plans to ship its first chiplets by the end of 2026, and any delay could weaken its hand in a sale.
Why it matters
The interest comes amid a wave of big AI chip deals, including Marvell's agreement to buy Celestial AI for up to $5.5 billion, according to Dealroom. For Silicon Valley's chip sector, a quick Eliyan exit would be another sign that buyers will pay up for startups that solve AI's data-movement problem.