Sovereign AI fund backs chipmaker that hasn't shipped a product yet #
Nine years after he left a Harrogate sixth form college two days into his A-levels, 25-year-old James Dacombe holds a stake in a British chip company that publicly filed shareholding data valued at about £946M ($1.27B).
The estimate follows a $312M (£232M) Series B round for Olix, the London inference chip designer he founded in 2024. Olix announced the financing on 3 August at a valuation of $3.3B (£2.5B). That is roughly triple the $1B mark set in February by a $220M (£163M) Series A.
Shareholding data put Dacombe's holding at about 38.6% before the round. Applied to the new valuation, that produces the £946M figure. Olix has not disclosed what he owns after the raise, and founders are normally diluted when fresh equity is issued.
The sum sits above $1B and below £1B. Olix is privately held, and Dacombe has not sold shares.
Why the £946M AI Chip Stake Is Still Paper Wealth #
Olix has not shipped a product. Its first chip, a decode accelerator called DX-1, is due to reach customers in the second half of 2027, with the design scheduled for completion this year. The valuation derives from the two funding rounds rather than revenue, delivered orders, or a quoted share price.
Those rounds total $532M (£394M). Olix said the Series B funds the delivery of DX-1, the wider silicon platform behind it, and the manufacturing commitments that scaling inference hardware requires. The company employs more than 140 people and is recruiting in London, Bristol, Austin, Toronto, and San Francisco.
It was incorporated as Flux Computing in 2024 and renamed Olix in January 2026. Fundomo, a company based in New York, led the Series B funding round. Participants included Arm, Hudson River Trading, and Reed Hastings, co-founder of Netflix. At the same time, existing backers Hummingbird Ventures, Crane, Plural, Creandum, Phoenix Court, and Transition increased their commitments.
What the Taxpayer Has Riding on the AI Chip Maker #
Sovereign AI, the state venture fund launched on 16 April with £500M ($675M), took equity in Olix in its fifth equity investment. The amount has not been disclosed. The fund caps equity at £20M ($27M) per company.
A separate scheme could supply early revenue. Under a £100M ($135M) advance market commitment set out in November 2025, the government will guarantee purchases from British firms building AI inference chips once the hardware meets agreed performance benchmarks.
AI minister Kanishka Narayan said the future of AI will be built on the chips that power models. He added that 'countries that build chips will build leverage.'
How Olix Plans to Convert the Valuation Into Revenue #
Olix compares a data centre to a factory whose product is the token, arguing that each stage of producing one places different demands on hardware. Its X-1 platform spreads a model across many chips linked by an optical network that moves data using light rather than copper. DX-1 holds models in on-chip SRAM and uses neither high bandwidth memory nor advanced packaging, the components in shortest supply across the industry.
Dacombe said the era of one chip handling every workload has passed, and that the sector is 'moving into a world of specialists.'
Matt Briers, finance chief at Wise for nine years and the executive who took the fintech public in 2021, becomes chief financial officer. Stanford professor emeritus Nick McKeown, a co-inventor of software-defined networking, joins the board.
Olix is not the only British contender. Fractile, a London firm also building SRAM-based inference chips for 2027 delivery, was valued at about $1B (£741M) in May. Further ahead sit the American challengers, with Etched at $10.3B (£7.6B) and SambaNova at $11B (£8.1B) in July. Nvidia is worth around $5.4T (£4T).
Dacombe was born in Harrogate in 2000. He left Ashville College in 2017, enrolled at a nearby sixth form college, and quit two days later. He founded CoMind in 2018 while still a teenager, and won a Thiel Fellowship, worth $250,000 (£185,000), in 2022.
CoMind raised $102.5M (£76M) in October 2025 in a round led by Plural, and its brain monitor is in trials at St Bartholomew's Hospital in London. Dacombe remains its chief executive.
Both companies sit under his holding vehicle, Bletchley Industries.
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