Dell Capital's Scott Darling explains how AI made chip startups hot - Business Insider

This story requires our BI Prime membership. To read the full article,Chip startups are hot, says Scott Darling, president of Dell Technologies Capital, which just invested in a new company led by 3 engineering stars from Google and Apple.

Darling says AI will soon become a pervasive tool, creating new opportunities for startups. "And all of this is going to happen in a handful of years," he told Business Insider.Scott Darling, president of Dell Technologies Capital — the IT giant's venture capital arm — remembers a time when investors shied away from chip startups because they were considered too risky.

But times have changed. Chip startups are hot in the eyes of investors thanks to new technologies that require machines with more processing power. One of the latest ones, Nuvia, came out of stealth mode late last year, quickly raising $53 million from investors, including Dell Capital. It was not Dell Capital's first foray into AI chips. Darling's team has also invested in Graphcore, the AI semiconductor company founded in 2016, whose chip is already being used to power Azure, Microsoft's cloud platform.The change in attitude toward chip startups is refreshing, Darling, who has worked in Silicon Valley since the 1980s, said.

"There's a lot more money available in the venture world than there used to be," Darling said. "So the the absolute size of the dollars required for a silicon team is not as daunting on a relative basis."There's a bigger reason for the attention chip startups are getting: the rise of AI.

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