The demand for artificial intelligence (AI) chips continues to soar, propelling not only chip manufacturers like Nvidia but also companies involved in reselling these chips. Together AI, a startup facilitating access to Nvidia server chips for AI developers to refine their models, is witnessing a significant boost. According to a report from The Information, the company is set to raise over $100 million in its latest funding round, pushing its valuation beyond $1 billion.

The investment round, spearheaded by Salesforce Ventures and supported by hedge fund Coatue Management, marks a doubling in valuation for Together AI within four months, highlighting the growing interest and confidence in the company’s offerings.

Established in 2022, Together AI provides an open-source cloud-based platform, enabling developers to construct customizable AI models. Additionally, the company acts as a reseller of Nvidia server chips, combining GPU services with software solutions, offering customers a more cost-effective means of refining their open-source models.

Despite the escalating demand for chips capable of supporting AI workloads, chip manufacturers like Nvidia have been grappling with supply shortages. Nvidia, for instance, has been rationing the availability of its H100 GPUs, foreseeing continued shortages for the next 18 months.

Since its inception, Together AI has secured a total funding of $122.5 million through previous funding rounds, drawing support from prominent investors such as Kleiner Perkins, Lux Capital, Nvidia, and SV Angel.

The closure date for the latest fundraising effort has not been disclosed, and sources involved in the deal suggest that the terms might undergo adjustments.

Salesforce Ventures’ decision to lead this investment aligns with its strategy of bolstering its presence in the AI landscape. In June 2023, the company doubled its generative AI investment fund from $250 million to $500 million, further underscoring its commitment to fostering innovation in the AI sector.