UK AI chip startup Fractile closed a $720 million Series C funding round at a $7 billion post-money valuation, according to the UK government and Reuters. The round was co-led by Thrive Capital, Founders Fund, Lightspeed and Redpoint, with participation from Google's CapitalG, BlackRock, DST Global, Balderton, the UK Sovereign AI Fund and the British Business Bank. Fractile develops chips and systems for AI inference and plans to launch its first commercial chip next year. The company had previously raised $220 million in a Series B round in May 2026.