James Dacombe’s AI chip start-up Olix raised $312mn, tripling its valuation to $3.3bn in six months. Founded in 2024 by the 25-year-old entrepreneur, Olix aims to compete with Nvidia by using photonic interconnect technology for faster, energy-efficient data transfer between chips. Backed by Arm, Fundomo, and others, the London-based firm plans to deliver products next year. Dacombe, also CEO of brain-monitoring Co Mind, emphasizes specialization over Nvidia’s integrated approach. The funding round includes investors like Netflix’s Reed Hastings and Hudson River Trading. Olix avoids scarce components like advanced silicon, focusing on custom designs.

The company employs 140 staff across London, Bristol, Toronto, and Austin, with hires from US Big Tech. Completing chip "tape out" by year-end is critical to outpace rivals. Olix’s compiler development, accelerated by AI tools, impressed investors. Demand for Nvidia alternatives drives private investment, with competitors like Etched ($300mn round) and Samba Nova ($1bn) also securing major funding.

Wall Street concerns about AI infrastructure debt have caused chip sell-offs, yet start-ups like Olix persist. Their photonic approach differentiates them, enabling scalability for large language models. Dacombe highlights speed as key, aiming to be the fastest from founding to chip manufacturing. The round also brought Matt Briers, former Wise CFO, as CFO. Challenges remain in manufacturing and market adoption, but Olix’s tech and funding position it strongly in the AI chip race.