Semiconductor startup Frore Systems has raised a $143 million Series D funding round. The investment was led by MVP Ventures and values the eight-year-old company at $1.64 billion. With this latest round, Frore has now raised a total of $340 million.
The company does not manufacture chips. Instead, it specializes in creating advanced liquid cooling systems for semiconductors. Frore was founded by two former Qualcomm engineers, and its technology was originally developed to provide air-cooling for phones and other small, fanless electronics.
The company’s strategic shift toward chip cooling was inspired by Nvidia CEO Jensen Huang. According to reports, Huang received a demonstration of Frore’s technology approximately two years ago and suggested the company develop liquid-cooling solutions for AI chips and systems. Following this advice, Frore released products compatible with various Nvidia chips and boards. The company has also developed cooling products for chips from Qualcomm and AMD.
Investment in AI semiconductors remains a very active area. Other recent unicorns in the field include Nvidia competitor Positron, which reached a $1 billion valuation in February. Another is Recursive Intelligence, which achieved a $4 billion valuation shortly after its founding. A new AI networking chip company named Eridu also recently launched with a $200 million Series A round, though it did not publicly disclose its valuation.
Additional investors participating in Frore’s Series D round include Fidelity, Mayfield, Addition, Qualcomm Ventures, and Alumni Ventures.