Situational Awareness raises its stake in the $5 billion-valued startup to $500 million, targeting semiconductor manufacturing tools.
AI-focused hedge fund Situational Awareness invested $400 million in chip startup Source Foundry, increasing its total stake to $500 million. The startup, valued at $5 billion, aims to disrupt semiconductor manufacturing by developing next-generation lithography systems and tooling.
Source Foundry, founded by Stanford researchers, has raised several hundred million dollars to date. It competes directly with ASML Holding, the dominant supplier of extreme ultraviolet lithography machines, which cost over $400 million each. Sequoia Capital previously backed the company, citing semiconductor tooling as a critical bottleneck in AI supply chains.
The investment follows a period of financial strain for Situational Awareness, which narrowly avoided collapse after margin calls on its public tech holdings.