Chinese artificial intelligence (AI) chip maker Enflame announced on Thursday the completion of a RMB300 million (US$43.39 million) new round of financing led by Redpoint China Ventures, a venture capital fund that focuses on technology, media, telecom (TMT) investments in China.
Chinese investment companies Oceanpine Capital, Yunhe Capital, Riverhead Capital, and ChinaEquity Group, as well as returning investor Tencent, participated in the new round.
Enflame was founded in March 2018 to develop cloud-based deep learning chips for AI training platforms. The Shanghai-based company specializes in developing chips based on a self-developed architecture design to achieve high computational power and efficiency with low cost for deployment in major machine learning frameworks.
The AI chips market is expected to be valued at more than RMB100 billion (US$14.46 billion) in the foreseeable future, driving the AI development and commercialization, said Yuan Wenda, founding partner of Redpoint China Ventures.
Proceeds of this round will be used for market expansion, mass production, business development, and the introduction of new AI products and customized AI chip solutions.
The company raised RMB340 million (US$49.18 million) in a series pre-A round led by Tencent, with participation from Zhen Fund, Delta Capital, Yunhe Partners and Summitview Capital in August 2018. It also raised an angel round from Shanghai STVC Group in June 2018 and a seed round from Summitview Capital in March 2018, both without disclosing financial details.