Capricorn Capital’s investment in NUVIA indicates that server chips will become the direction of the next three years

Foreword:

On November 16, Apple’s three former semiconductor executives in charge of iPhone chips formed a joint venture called Nuvia, a technology company with the purpose of designing processors for data centers. This will lead them to compete with current industry overlords Intel and AMD. Direct competition.

The senior founding team behind the founding of NUVIA

Gerard Williams, Manu Gulati, and John Bruno founded a company that designs processors for data centers, called NUVIA.

The combined new company plans to develop a chip that is faster, more energy-efficient, and safer than the existing data center processors. The goal is to design powerful chips for small battery-powered smart devices such as iPhones and apply them further Large-scale data center servers with high power consumption are designed to compete with current industry leaders Intel and AMD.

·Williams served as chief architect of Apple’s central processing unit and system-on-chip for more than nine years;

·Gulati has worked at Apple for eight years, engaged in the development of mobile systems on chips;

· Bruno has worked in Apple’s platform architecture team for five years.

The resume of the founding team of NUVIA shows that it is a powerful new company. Each of Apple’s new generation chips has improved performance in the hands of the three, and the three have also gained valuable experience in chip development and design.

Capricorn Capital’s investment in NUVIA indicates that server chips will become the direction of the next three years

Competitors fought back against Intel’s dissatisfaction

In the PC market, AMD and Intel still have a certain degree of competitiveness. Even at the worst, AMD can have a market share of more than 10%. It is precisely because of AMD’s competition that the price of PC processors has been declining since 2007.

In contrast, in the server chip market, Intel has almost no rivals. It occupies more than 90% of the server chip market. Since it has almost no competitors in this market, the price of server chips has been rising since 2007. As a result, it has earned increasingly lucrative profits.

As server chip prices continue to rise, server companies and Internet companies are dissatisfied with Intel’s. The net profit margins of the top three global server companies Dell EMC, HPE, and Inspur are not high. Last year, Inspur Information’s net profit margin was only 1.4%, which is a huge difference from Intel’s net profit margin of more than 20%. The increase in chip prices puts server companies under tremendous pressure.

Capricorn Capital invests in NUVIA to seize share

Limited by Moore’s Law, Intel’s process technology is in trouble, and their past chip design methods are also facing severe challenges. But on the other hand, TSMC, the partner of Arm server chips, is rapidly advancing the progress of the process, and their 5nm will also be mass-produced next year, which will help these entrants to make better performance guarantees.

Recently, NUVIA announced that it has completed a US$53 million Series A venture capital jointly led by Capricorn Investment Group, Dell Technologies Capital, Mayfield and WRVI Capital.

Intel has more than 90% market share in the server chip market, which has been their own place for many years, including AMD and Arm formations have tried to enter this market for many years, but many times have failed.

But Nuvia’s purpose is to design processors for data centers, in direct competition with the current industry hegemons Intel and AMD, in an attempt to seize the share of the giants.

Capricorn Capital’s investment in NUVIA indicates that server chips will become the direction of the next three years

Intel will be on the defensive for a long time

For server chips, Intel’s reservation, AMD’s recent offense has already made them feel the pressure. According to forecasts, after the release of the new second-generation EPYC processor, AMD will increase its server chip market share to 10% in 2020.

After AMD released the second-generation EPYC server chip, its powerful performance has received many attentions, and Intel’s pressure has gradually increased, so Intel has begun mass production of 10nm chips.

Intel will launch two generations of server chips in 2020, and the replacement interval will be shortened to 4-5 months. One of them will be the 14nm process Cooper Lake, and the other will be the 10nm process Ice Lake-SP.

Arm has been promoting its own server IP core for the past two years. Arm recently launched a new Neoverse N1 core, Marvell in the server field, they hope to obtain higher single-threaded performance and some advanced features in the core.

Capricorn Capital’s investment in NUVIA indicates that server chips will become the direction of the next three years

AMD recently launched the world’s first 7nm chip. Google and Twitter also announced that AMD core processors will be used in the CPU part of the data center in the future. This 7nm chip will challenge Intel’s 10nm chips and will become AMD An important milestone for

In the previous processor market, Intel’s products accounted for about 90%, but this year’s processor sales have changed a lot. Intel has about 60% and AMD’s 40%. This is also shown in general processors. In terms of choice, AMD slowly regained its market share.

Capricorn capital investment has a huge investment radius

Capricorn Investment Group is the investment management company of eBay founder Jeff Skoll. As a B-corp, Capricorn has focused on impact investment since its establishment, and currently directly manages more than US$5 billion in impact funds.

Capricorn Capital’s investment in NUVIA indicates that server chips will become the direction of the next three years

SpaceX has received more than $1.25 billion in financing since its establishment. Investors include the Capricorn Investment Group. Although SpaceX’s Iron Man company is known for its recoverable rockets, in 2014, Elon Musk revealed on Twitter, SpaceX is developing a micro-satellite to build a satellite network covering the world.

· In 2015, Aspiration received $15.5 million in Series A investment, followed by Capricorn Investment Group and others. Aspiration is an online financial platform in the United States, mainly engaged in financial product development, and sold directly to C-end users on the website.

· Flash memory supplier Tegile received $70 million in Series D financing from Capricorn Capital Investment. Tegile provides flash memory optimization solutions for enterprises of different sizes to help them improve program operation, optimize storage space and save operating costs.

· Sense, a platform for household energy use and awareness in Boston, raised US$14 million in Series A financing. The seed round was invested by Capricorn Investment Group.

·TrueCar, a US auto price comparison website, has just obtained US$200 million in debt and equity financing, and plans to use the funds to expand its business and start acquisitions. The investors in this round of financing include Capricorn Capital Investment Group.

Capricorn Capital’s investment in NUVIA indicates that server chips will become the direction of the next three years

·Recently, the startup Joby Aviation announced that it has received US$100 million in Series B funding to put its prototype electric aircraft into pre-production and certification. They have designed and built all-electric, vertical take-off and landing passenger aircraft that can pass flight tests, and use them for passenger operations, the second round of financing after the A round of financing led by the Capricorn Investment Group.

·Bangalore SaaS payment platform Ezetap announced the completion of US$16 million in financing, led by Jonathan Soros’ investment fund JS Capital Management. Ezetap was established in 2011. Its SaaS payment system supports merchants to receive various digital transactions, including card swiping, online payment, and mobile wallets.

· GotIt received US$9 million in Series A financing, led by Jeff Skoll, co-founder of Capricorn Investment Group and eBay. GotIt is an online one-to-one teaching service organization.

·Innovium announced on Monday that it has completed the C round of financing of 38.3 million US dollars, and is committed to launching high-performance Ethernet switch chips for data centers. The functions of the chips range from 3.2 Tb/s to 12.8 Tb/s. Designed for data centers.

Innovium’s current round of financing was led by Redline Capital. After the completion of the C round of financing, Innovium successfully raised a total of 90 million US dollars and accelerated the commercialization of its Teralynx series of products.

end:

Limited by Moore’s Law, Intel’s process technology is in trouble, and their past chip design methods are also facing severe challenges. Whether the newly entered NUVIA can rely on the respective experience of the three outstanding founders and the injection of Capricorn capital to pose a real threat, it needs Observe for a period of time.

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