Nuvia Acquired by Qualcomm for $1.4 Billion

Achieving unicorn status within two years is remarkable. However, realizing an exit at a unicorn valuation in the same timeframe is even more impressive.

This morning, Qualcomm revealed its acquisition of high-performance computing innovator NUVIA for $1.4 billion, adjusted for working capital and debt considerations.

The company, which we previously covered extensively following its launch and a $53 million Series A funding round in late 2019, and again when it secured $240 million in Series B funding from Mithril a few months ago, was established by a team of highly skilled chip engineers formerly with Apple. These engineers had been instrumental in developing Apple’s A-series chips, which power the company’s iPhones and iPads.

Similar to the impact of Apple’s recent M-series chips for laptops – which have impressed with their exceptional balance of energy efficiency and performance – NUVIA’s founders aimed to leverage their expertise in power management to deliver high performance in the data center environment. Considering the substantial and growing power demands of data centers, particularly with the increasing use of AI applications in the cloud, NUVIA sought to provide a solution that offered both high performance and reduced power consumption, ultimately lowering costs for cloud computing providers.

According to Qualcomm’s official announcement, NUVIA’s technology will be integrated throughout Qualcomm’s product line, with a primary focus on enhancing its 5G-enabled Snapdragon chips. The company’s team and leadership are anticipated to join Qualcomm, subject to regulatory approval from U.S. authorities.

NUVIA stood out as a particularly promising company among the emerging generation of silicon startups. However, it was also involved in a legal dispute between one of its founders, Gerald Williams III, a former Apple engineer, and his previous employer. Apple initiated a civil lawsuit against Williams in 2019 (California Superior Court of Santa Clara, 19-cv-352866), alleging that he attempted to recruit former colleagues to NUVIA, violating his contractual agreements with Apple. Williams responded with counter-motions, and the case has been in the discovery phase ever since, with recent developments occurring just last month as both parties requested documents from each other to advance the proceedings.

The influence of this legal case on the timing of the acquisition remains unknown, as does whether Qualcomm’s strong supplier relationship with Apple might facilitate a faster resolution to the lawsuit. We have contacted a NUVIA representative for a statement.

Despite the ongoing legal matter, the outcome is a successful exit at a $1.4 billion valuation, achieved with approximately $300 million in venture capital raised over roughly two years. While Mithril may not be entirely satisfied with the rapid timeline, earlier investors such as Capricorn Investment Group, Dell Technologies Capital (DTC), Mayfield, and WRVI Capital are likely to see favorable returns on their investments. Naturally, the founders also benefited significantly from this outcome.