An AI startup that is promising to rock rivals like Nvidia (NVDA) and “change the computing industry forever” has raised $23 million. It has also tempted the former boss of Intel (INTC) to join its board.
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Snowcap Compute is working on building artificial intelligence computing chips using superconducting technology. It hopes to build computers that could one day beat the best AI systems while only using a fraction of the electricity.
According to a Reuters report, Snowcap’s founding team includes two scientists – Anna Herr and Quentin Herr – who have done extensive work on superconducting chips at chip industry research firm Imed and defense firm Northrop Grumman (NOC), as well as former chip executives from Nvidia and Alphabet′s Google (GOOGL).
While the chips can be made in a standard factory, they require a metal called niobium titanium nitride that depends on Brazil and Canada for key ingredients. Snowcap plans its first basic chip by the end of 2026, but full systems will not come until later.
Cryogenic Coolers
To work, the chips need to be kept very cold in cryogenic coolers, which consume a lot of electricity. This has proven to be a major roadblock in their development over the last few years.
However, given the recent surge in AI demand, conventional chips are already putting electricity grids under strain.
So, argues Snowcap, dedicating some of a data center’s power needs to cryogenic coolers makes sense. “Power (efficiency) is nice, but performance sells,” said Snowcap’s chief executive Michael Lafferty. “So we’re pushing the performance level way up and pulling the power down at the same time.”
Indeed, Snowcap believes that even after accounting for energy used in cooling, its chips will be about 25 times better than today’s best chips in terms of performance per watt.
Pat Gelsinger, Intel’s former CEO who is joining Snowcap’s board, added: “A lot of data centers today are just being limited by power availability.”
Nvidia’s stock was down 1% in pre-market trading with Google flat.
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