San Jose-based Nuvacore, a six-month-old chip startup developing processors for data centers, is seeking hundreds of millions of dollars at about a US$2.5 billion valuation to build a data center central processing unit, according to two people familiar with the fundraising.

The round has not closed, and the amount raised and valuation could still change.

Nuvacore has not yet developed a product. In September, it said it would build the chip’s core functions before committing to an architecture such as x86 or Arm.

Sequoia Capital led its seed funding round earlier this year. Co-founder Gerard Williams previously founded Nuvia, which Qualcomm acquired for US$1.4 billion in 2021.

The fundraising comes as the server CPU market is shifting from Intel to Advanced Micro Devices and Arm. In 2025, Arm forecast gains in its data center CPU market share.

🔗 Source: Reuters