Etched, a San Jose, Calif.-based AI chip startup, is in talks to quadruple its valuation to about $20 billion in a new funding round led by existing investor Jane Street, according to people familiar with the matter. The company is also raising capital at a $10 billion valuation in a separate round led by Sequoia Capital.

The back-to-back financings reflect the frenzied market for venture-capital investments in AI startups, where companies hold bargaining power over investors scrambling to back leading AI players. Etched is building chips for running AI models, known as inference, and says it has $1 billion in customer demand.

While Nvidia dominates AI chips with its GPUs for training models, a wave of startups including Cerebras Systems, Groq, Fractile, and Samba Nova are challenging its dominance with inference-focused designs. Etched was founded in 2022 by Harvard dropouts Gavin Uberti, Chris Zhu, and Robert Wachen. Earlier investors include Stripes, Peter Thiel, Ribbit Capital, and Primary Venture Partners.