SiFive Raises $400 Million to Expand into Data Center Chip Market

Silicon Valley-based SiFive has secured $400 million in new funding from investors including Nvidia and Atreides Management, as it moves to expand into the fast-growing market for data center central processing units.

The funding round values SiFive at $3.65 billion and is expected to be the company’s final raise before pursuing an initial public offering, according to Chief Executive Patrick Little, who did not specify a timeline for the listing.

Targeting the Data Center CPU Market

SiFive plans to use the new capital to develop designs for data center CPUs, positioning itself in a segment experiencing intense competition amid surging demand for AI and cloud computing infrastructure.

The company does not manufacture chips directly. Instead, it provides customizable chip blueprints that customers—such as Google—can adapt for their own internal designs.

RISC-V Gains Momentum

SiFive’s technology is built on the open-standard RISC-V architecture, which is governed by a nonprofit foundation rather than controlled by a single company. This contrasts with the traditional model dominated by Arm, whose chip designs have long been widely licensed across the industry.

Recent strategic shifts by Arm Holdings—including its move into producing its own chips—have created new opportunities for alternative providers such as SiFive to attract customers seeking greater flexibility and independence.

Intensifying Industry Competition

The data center CPU market is becoming increasingly competitive, with major players expanding their presence. Arm has recently introduced its own offerings, Nvidia has entered the segment, and Intel continues to face strong demand for its processors.

SiFive’s entry into this space reflects growing interest in diversified chip architectures as companies seek to meet the computational demands of AI-driven workloads.

Broad Investor Support

In addition to Nvidia and Atreides Management, the funding round included investors such as Apollo, Point72, T. Rowe Price Investment Management, Prosperity 7 Ventures and Sutter Hill Ventures.