Multiverse Computing Eyes €500M Funding

Multiverse Computing SL, a Spanish artificial intelligence software company, is reportedly in advanced discussions to secure around €500 million ($595 million) in fresh funding. This substantial financing round is anticipated to value the company at over €1.5 billion, potentially adding it to Europe's elite group of AI unicorn startups. The funding is expected to be finalized within the first half of the year, attracting new investors.

The company, founded in 2019 and based in San Sebastian, Spain, focuses on making AI deployment more cost-effective and efficient for enterprises. Multiverse Computing achieves this by shrinking large language models, thereby reducing their energy consumption and computational demands. In January, the company's annual recurring revenue reached €100 million, a key metric for demonstrating its rapid growth.

Multiverse Computing is strategically positioned to capitalize on the increasing demand for optimized AI models. This demand is fueled by the development of new AI "gigafactories" in Europe and the integration of AI technology into devices such as satellites, drones, and smartphones. The startup also incorporates quantum computing principles, employing computational scientists and quantum physicists and collaborating with quantum hardware manufacturers.

Existing investors in Multiverse Computing include HP Tech Ventures, Forgepoint Capital, CDP Venture Capital, and SETT, the Spanish government's digital investment holding company. The potential new funding round underscores the continued investor interest in AI startups, despite concerns about market valuations, as the adoption of artificial intelligence accelerates across industries.