Google-Backed Startup Fluidstack Challenges NVIDIA in AI Chip Market

Google's ambitious plan to challenge NVIDIA in the AI chip market has taken shape through its partnership with startup Fluidstack. The British company, valued at $18 billion, has become a key player in Google's effort to expand its Tensor Processing Units (TPUs) business.

Founded in 2017 by Gary Wu, Jamie Cox, and César Maklary, Fluidstack initially helped gamers rent out idle GPUs to AI researchers. However, it has since evolved into a testing ground for Google's TPU sales initiative, with the goal of rivaling NVIDIA.

The startup's data centers will support Anthropic's 1 million TPU deployment project, and its revenue is expected to reach $660 million in 2026, more than tripling from last year. By 2030, Fluidstack aims to operate over 17 gigawatts of computing power across its sites.

Fluidstack has already secured a $1.5 billion financing led by quantitative fund Jane Street, with a post-money valuation of over $18 billion. This deal follows a previous $750 million financing in July this year, which gave the company a valuation of $7.5 billion.