Benchmark Leads Funding Round for Chip Startup Tendrils Compute

Benchmark has won a hot competition to lead a new funding round for early-stage chip startup Tendrils Compute, according to multiple people familiar with the matter.

Sources say the company is already discussing a fast follow-up raise that could value it at more than $1 billion.

The deal is part of a wave of VC investment in specialized chips, including inference-focused startups such as Etched, which doubled its valuation to $21 billion in August.