Jeff Bezos backs $2.6B CuspAI to build AI-designed chip materials

Jeff Bezos has invested in AI startup CuspAI aimed at discovering and designing advanced materials that could support the next-gen computer chips.

The purpose of this investment is to fix the material shortage that is responsible for the chip crisis the world has been witnessing for the past few months.

In July, CuspAI also raised $450 million Series B at the valuation of $2.6 billion. In the funding round, Bezos Expeditions, AMD Ventures, Nvidia and Meta took part.

CuspAI, founded in 2024, deploys artificial intelligence to identify, analyze and test new materials for computing chips. Initially, the scope of the company was limited to materials used for water purification and carbon capture. With the expansion of the scope by including the AI infrastructure, the startup offers hope in the times of supply chain crunch.

In the wake of the AI boom, the company can also search for alternative materials with similar properties of scarce elements like tantalum, gallium and iridium and help scientists develop new materials. The International Energy Agency even warned that data center demand for gallium could exceed current supply levels by 2030.

The geopolitical rift between the US and China over rare earth minerals also worsen the prospects of supply chain risks.

Beyond initial funding, CuspAI also launched the AI Materials Foundry, an industry-wide coalition of over 45 industry leaders, including Nvidia, Samsung, Meta and Hyundai Motor Group.