Harvard Dropouts' Startup Etched Wins Over Investors With AI Chip Success

Etched, a startup founded by three 24-year-old Harvard dropouts, has been making waves in the semiconductor industry despite initial concerns from investors. The company's AI chips have attracted major customers, including quantitative-trading firm Jane Street, which has signed on as its first customer and led a new $700 million funding round valuing Etched at $21 billion.

Etched was initially viewed with skepticism by investors due to the founders' limited experience in semiconductor hardware. However, the company has since raised nearly $2 billion and built a team with significant semiconductor expertise, including former Nvidia employees.

The startup's hiring trend has been notable, with around 15% of its roughly 400 employees previously working at Nvidia. Etched has also hired engineers from other established semiconductor firms, including former Nvidia vice president Jimmy Daley, who is now an investor in the company.

Etched co-founder and president Robert Wachen said that the company may be 'the only AI chip that was built by a startup that was successful on the first try.'