Catenaa, Sunday, November 01, 2026- UK’s Sovereign AI Fund has joined a $6.5 billion deal to fund Anthropic-backed Fractile.
The Telegraph said that the Sovereign AI Fund, which was set up earlier this year to invest in promising technology ventures, has joined a funding round for Fractile, a London-based company backed by the US AI giant Anthropic.
Fractile, a London-based semiconductor start-up established by Oxford robotics specialist Walter Goodwin, has attracted substantial investment during 2026. The company has also reportedly secured an agreement to develop specialised AI chips for Anthropic.
“It is expected to raise around $700 million in a deal to be announced as soon as next week,” sources told The Telegraph, adding that the Sovereign AI Fund is among the new investors taking a stake in the start-up.
Fractile is among several emerging British AI companies attracting substantial investor interest, with valuations increasing sharply as demand for AI technology grows.
The deal with the Sovereign AI Fund is expected to value it at about $6.5 billion, up from about $1 billion earlier this year, The Telegraph reported.
According to The Telegraph, the UK’s potential investment comes amid growing concerns about the sustainability of AI giants’ huge infrastructure spending.
These spending commitments have driven up the valuations of tech companies that power AI systems, such as Anthropic’s Claude or OpenAI’s ChatGPT.
According to The Telegraph, Anthropic has a $250 million deal with Fractile to supply specialised chips that it claims will bring down the cost of intensive AI tasks.
“Anthropic is targeting a $2 trillion float within weeks, in a deal that will test the appetite of financial markets to keep backing the AI boom,” The Telegraph said.
In the past year, valuations of UK startups have started to rise; for example, Ineffable Intelligence, created by a former DeepMind researcher, reached a valuation of $5.1 billion just months after it was founded. Meanwhile, chip developer Olix surpassed $3.3 billion after its valuation tripled within six months, according to The Telegraph.
According to The Telegraph, the Sovereign AI Fund, which typically invests between $1.34 million and $13.4 million per deal, invested in both businesses as their values surged.
