Startups are increasingly seeking large funding rounds to address AI infrastructure shortages. The startup behind AI assistant Instinct is in talks to raise $1 billion due to compute capacity constraints after growing to over 100,000 users on an invite-only basis. Coatue Management has discussed a multibillion-dollar joint venture involving chip startup MatX to finance purchases of memory and logic dies and reserve manufacturing capacity. Access to AI infrastructure now requires big, long-term commitments, making it tougher for young but fast-growing companies to secure capacity.
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