Auradine becomes Velaura: $110M at over $1bn for selling watts, not throughput
A Bitcoin-mining chip designer has rebranded as an AI silicon IP vendor, and the pitch it raised on is power per matrix multiply rather than peak performance.
The Product Desk
What happened
- Velaura AI Inc., a developer of low-power AI chips, announced it raised $110 million in funding; Seligman Ventures led the Series A round, joined by Samsung Catalyst Fund, Mayfield and more than a half-dozen others.
- Velaura is now valued at over $1 billion. The company was earlier known as Auradine and developed Bitcoin mining chips.
- Titan Core is a suite of processor building blocks and professional services designed to help customers develop AI chips, with an emphasis on energy efficiency.
- The funding deal comes six months after the company changed its market focus and brand.
- In March, Velaura shifted its focus from crypto accelerators to Titan Core.
Why it matters
Auradine, which built Bitcoin mining processors, has renamed itself Velaura AI and raised $110 million in a Series A led by Seligman Ventures, with Samsung Catalyst Fund, Mayfield and more than half a dozen others joining, at a valuation above $1 billion [2][4]. What it is selling is not a chip but the low-voltage building blocks other companies use to make one [5], which says something about which axis of accelerator design currently has buyers.
The round comes six months after the company changed its market focus and brand [6]. In March it moved off crypto accelerators and onto Titan Core, a suite of processor building blocks plus professional services for customers designing their own AI chips [5][7]. The contents are conventional IP-vendor fare: a cell library of pre-packaged designs that Velaura says are optimised to run at low voltage [8], custom low-voltage circuits for teams that supply only an RTL description of the processor they want [9], and what the company calls a proprietary toolflow aimed at reliability and manufacturing yield [10]. Titan Core supports several manufacturing processes including the three- and two-nanometre nodes [11], and Velaura says it is working with multiple hyperscalers on projects at those nodes, without naming them [12]. It also expects edge-device customers [13].
The commercial argument is arithmetic rather than architecture. According to Velaura, matrix multiplications and certain related operations can account for up to 70% of an AI chip's power draw [1], and it claims Titan Core cuts the energy those calculations need by a factor of two to four, worth up to $1,300 per chip over three years [3]. That is roughly $433 per chip per year [16], which only matters at fleet scale, and it is the vendor's own figure with no named customer attached [12][3]. Chief Executive Rajiv Khemani framed the market the same way, saying the next era of AI will be defined not only by better models but by better compute economics [14].
The lineage is visible in the old product. The liquid-cooled Teraflux AH3880 mining chip topped out at 600 trillion computations per second [17], and carried a feature called EnergyTune that lowered its energy use when grid capacity was constrained [18]. A company that spent years selling into an industry where electricity is the dominant input cost has repackaged that instinct for buyers whose constraint is now the same. The pivot is less a change of business than a change of customer.
At $110 million against a valuation above $1 billion, the round represents no more than about 11% of the post-money company [19], so the founders have sold the story cheaply for a firm with no disclosed AI revenue. The money goes to engineering and customer-facing headcount [15].
Watch for whether any of the unnamed hyperscalers becomes a named tapeout, because IP vendors live on reference designs. Watch too for a third-party measurement of the two-to-four-times claim in shipped silicon, and for whether the savings figure survives contact with a stated baseline process and design.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence55
- Adoption25
- Hype gap+35
- Incentives70
- Confidence60
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
According to Velaura, matrix multiplications and certain related operations can account for up to 70% of an AI chip's power usage.
- [2]
Velaura AI Inc., a developer of low-power AI chips, announced it raised $110 million in funding; Seligman Ventures led the Series A round, joined by Samsung Catalyst Fund, Mayfield and more than a half-dozen others.
- [3]
Velaura claims Titan Core reduces the energy required for those calculations by a factor of two to four, which can translate to savings of up to $1,300 per chip over three years.
- [4]
Velaura is now valued at over $1 billion. The company was earlier known as Auradine and developed Bitcoin mining chips.
- [5]
Titan Core is a suite of processor building blocks and professional services designed to help customers develop AI chips, with an emphasis on energy efficiency.
- [6]
The funding deal comes six months after the company changed its market focus and brand.
- [7]
In March, Velaura shifted its focus from crypto accelerators to Titan Core.
- [8]
Titan Core includes a cell library, a collection of pre-packaged cell designs that removes the need for customers to develop everything from scratch; Velaura says the modules are optimized to operate at low voltage.
- [9]
Customers with more advanced requirements can commission custom low-voltage circuits; according to Velaura, chip teams only need to provide an RTL file describing the processor they wish to design.
- [10]
Velaura provides customers with what it describes as a proprietary toolflow, a collection of technical assets that help engineers increase the reliability and manufacturing yield of their chips.
- [11]
Velaura says Titan Core supports multiple manufacturing processes including the chip industry's latest three- and two-nanometer nodes.
- [12]
The company disclosed that it is working with multiple hyperscalers on chip projects using three- and two-nanometer technologies; the hyperscalers are not named in the announcement.
- [13]
Beyond the data center market, Velaura sees customers using its low-voltage chip technology to develop processors for edge devices.
- [14]
Velaura Chief Executive Officer Rajiv Khemani said: "Every advance in AI, from reasoning models to embodied intelligence, creates demand for more compute, and ultimately more power. The next era of AI will be defined not only by better models, but also by fundamentally better compute economics."
- [15]
Velaura will use its new funding to accelerate engineering initiatives and grow its customer-facing teams.
- [16]
Velaura's claimed saving of up to $1,300 per chip over three years is about $433 per chip per year.
- [17]
The company's most advanced crypto processor, the liquid-cooled Teraflux AH3880, can perform up to 600 trillion computations per second.
- [18]
A feature called EnergyTune enables the Teraflux AH3880 chip to lower its energy usage when grid capacity is limited.
- [19]
A $110 million round at a post-money valuation above $1 billion accounts for no more than about 11% of the company.
Sources
2 independent publishers whose own reporting we read for this story.
- siliconangle.comVelaura AI raises $110M to develop power-efficient AI chips
1 article · August 18, 2026
- thenextweb.comVelaura raises $110mn to sell AI chips that cut the power bill, not the clock speed
1 article · August 19, 2026
Topics and entities
Topics
- AI chip energy efficiency
- Physical AI
- Semiconductor IP Licensing
Entities
- Prosperity7 Ventures
- Seligman Ventures
- Arm
- Mayfield
- Capricorn Investment Group
- MARA
- Samsung Catalyst Fund