UK chip startup Fractile will invest £100 million ($137m) to expand its UK operations over the next three years.

The expansion will see the company increase its UK-based team, grow its existing sites in London and Bristol, and create a new hardware engineering facility in the latter city.

Engineers at the forthcoming Bristol facility will turn Fractile’s chips into next-generation AI systems, the UK’s Department for Science, Innovation, and Technology said in a statement, adding that the new site will also host a lab where companies can test software that has been designed to support future compute infrastructure.

where experts can test new software designed for future compute technology — capable of running the most powerful AI models much faster than today’s hardware.

“I am setting Britain’s AI leaders a challenge – bang the drum for start-ups, spread the opportunities to every corner of our country, and embrace risk,” said AI minister Kanishka Narayan. “This is how we leverage AI to serve hard-working people, our economy, and British values. By investing in British tech innovation, just as Fractile is doing today, we can reinforce our leadership in AI and boost our influence on the global stage.”

Fractile was founded in 2022 by Dr. Walter Goodwin, a then PhD student at the University of Oxford’s Robotics Institute. The startup emerged from stealth in July 2024, having raised $15m in seed funding from a round co-led by Kindred Capital, Nato Innovation Fund, Oxford Science Enterprises, and a number of angel investors.

Entrepreneur Stan Boland, a former Arm and Acorn Computers executive, is also an investor and listed as a director on Companies House – a UK government register of businesses, and in January 2025, former Intel CEO Pat Gelsinger he had invested in Fractile.