en.Wedoany.com Reported - British chip startup Fractile has pledged to invest £100 million in its UK operations over the next three years and plans to expand its offices in London and Bristol.

UK Artificial Intelligence Minister Kanishka Narayan praised the move in a speech, calling on AI entrepreneurs to take more risks. He stated that investing in UK technological innovation can strengthen the country's leadership in AI and enhance its global influence.

Founded in 2022, Fractile focuses on developing intelligent chips for inference—the stage where large language models generate outputs. Its core technology runs AI inference on on-chip memory, eliminating the need to move model parameters between separate memory and processors.

The company claims this architecture can run inference tasks 100 times faster and 10 times cheaper than competitor chips.

Fractile's current target is to manufacture chips in the second half of 2026.

For the UK government, which hopes to nurture homegrown tech companies, Fractile's success could reduce reliance on US tech giant NVIDIA. Fractile CEO Walter Goodwin was cited in the UK's 2025 Compute Roadmap, a government plan aimed at transforming the UK from an "AI recipient to an AI creator."

Fractile's development has not been without challenges. Earlier this month, it was reported that co-founder and former Chief Technology Officer Yuhang Song was forced to leave the company in 2024 due to his association with Beihang University. Beihang University is one of China's "Seven Sons of National Defense," institutions supervised by the Ministry of Industry and Information Technology, informally maintaining close research ties with the People's Liberation Army, with about half of their R&D budgets allocated to military projects. There is no indication that Song engaged in misconduct; his departure was seen as an effort to clean up the company, opening doors for future investment from the UK and the US.

For Fractile to become the UK's answer to NVIDIA, the company needs to rapidly scale up investment in the coming years.

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