Fractile, an AI hardware startup based across Bristol and London, has secured backing from the UK Government's Sovereign AI Venture Fund and the British Business Bank as part of a funding round worth more than £500 million, the Cabinet Office and the Department for Business, Innovation, Science and Trade announced on 11 November 2026. The Series C round values the company at over £5 billion and also includes investors CapitalG, Lightspeed and Redpoint.

According to the government, Fractile is developing chips and related technology intended to make AI hardware faster, more energy efficient and less costly, working across chip design, software and machine learning research. Ministers framed the investment as part of efforts to strengthen UK sovereign capabilities in critical technologies, reduce reliance on overseas supply chains and support skilled jobs, with the company planning to expand its presence in Bristol.

AI Minister Kanishka Narayan and Business Secretary Jonathan Reynolds welcomed the funding, while Sovereign AI Investment Partner Joséphine Kant and British Business Bank Chief Investment Officer Leandros Kalisperas cited the company's technical approach and potential to compete globally. The announcement follows the Budget, which confirmed a further £140 million for Sovereign AI plus £60 million to support the fund's investments and £80 million for its R&D Procurement Scheme.