🔍 AI Chip Crisis Sparks $1B Analog Revolution: Mythic AI’s 10x Power Play—Join the Smart Money Before VCs Skyrocket Valuations
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I’m pumped about a huge trend shaking up the AI world—the AI Chip Crunch. NVIDIA’s H100 chips, the top choice for training giant AI models, are sold out into 2026, with waitlists piling up (Bloomberg, March 10, 2025). Cloud platforms like AWS and Azure are maxed out for AI training, leaving startups in a bind (TechCrunch, February 15, 2025). But here’s the cool part: this shortage is pushing startups like Mythic AI and Rain AI to shine with analog computing, a smart way to get around traditional chip limits. As of April 20, 2025, I’ve got the latest scoop on why analog’s taking off and how you can score 5-10x profits in this $70 billion market. Let’s dive in!
What’s the Chip Crunch All About?
I’ve been keeping a close eye on this chip shortage, and it’s a big deal. AI models—like the ones powering ChatGPT—are getting massive, needing tons of computer power. Training a 100-billion-parameter model costs around $50 million in cloud computing, up 35% from last year because of supply issues (CB Insights, January 2025). NVIDIA’s H100 chips are the best for this, but they’re super hard to get—only 3 million were made in 2025, while companies wanted 5 million (Reuters, March 25, 2025). Cloud services are stretched thin, with AWS prices jumping 50% (VentureBeat, February 20, 2025).
This crunch is hitting everyone hard. Big companies like Google are hoarding chips, spending $75 billion on AI setups (Forbes, January 2025), while startups are stuck waiting or paying crazy prices. But this chaos is opening doors for new solutions. Regular chips (called digital, made of silicon) are slow to make and pricey. That’s where analog computing steps in—it’s like a brain, using smooth signals to do AI math faster and cheaper. Startups like Mythic AI and Rain AI are leading the charge, and investors are taking notice.
Why Analog Computing Is a Big Deal
Analog computing’s a fresh approach, and here’s why it’s picking up steam:
Super Fast and Cheap: Analog chips can do AI math 10-100 times faster for things like recognizing pictures, using up to 90% less power than regular chips (IEEE Spectrum, January 2025). That saves big bucks when digital chips cost millions to run.
Easier to Make: Analog chips don’t need the same super-tight factories as NVIDIA’s, so they avoid production jams at places like TSMC (Bloomberg, February 2025).
Great for AI: AI needs tons of number-crunching, and analog chips handle it naturally, unlike digital chips that slog through steps (Nature Electronics, March 2025).
I checked out Mythic AI, which raised $13 million in 2023 to make analog chips for devices like drones and cameras (Crunchbase, October 2023). Their chips use 90% less power, perfect for AI that runs on the go, like in smart gadgets (TechCrunch, November 2023). Rain AI, another hot startup, raised $25 million in 2023 for neuromorphic chips that mimic brain patterns, cutting AI costs by up to 80% (Crunchbase, December 2023). They’re working with IoT companies, tapping into a $1.1 trillion market for connected devices (Statista, February 2025). Investors are pouring in—analog chip startups raised $1.2 billion in 2024, a 50% jump from 2023 (PitchBook, January 2025).
Why You Should Care
The AI compute market’s worth $70 billion in 2025 and could hit $250 billion by 2030 (Statista, February 2025). With digital chips in short supply—TSMC’s factories are booked, causing six-month delays (Bloomberg, February 2025)—startups like Mythic AI and Rain AI are your ticket to big profits. A $1 million investment at a $50 million valuation could grow to $250-500 million if they reach a $1-2 billion exit, like Cerebras Systems did at $4 billion (TechCrunch, January 30, 2025). Right now, 80% of company bosses want tech that saves money on computing (McKinsey, February 2025), and analog’s low power and speed make it a winner for things like drones, cars, and even cloud AI. I’ve seen posts on X raving about chip shortages pushing new ideas (April 2025), and I’m betting analog’s the way to go.
Startups I’m Keeping an Eye On
Here’s my list of analog computing startups to watch:
Mythic AI: Raised $13 million in 2023, estimated $50 million valuation. Makes analog chips for edge devices, cutting 90% of power use—working with drone companies (Crunchbase, October 2023).
Rain AI: Raised $25 million in 2023, estimated $80 million valuation. Neuromorphic chips save 80% on AI costs—pilots with IoT firms (Crunchbase, December 2023).
Syntiant: Raised $55 million Series D in 2024, $200 million valuation. Analog chips for smart speakers, saving 80% power—used by Amazon (TechCrunch, August 2024).
Anaflash: Raised $10 million seed in 2025, $30 million valuation. Analog chips for IoT, 50 times more efficient—Samsung pilot (Crunchbase, February 2025).
EnCharge AI: Raised $21.7 million in 2023, $60 million valuation. Analog compute for AI, 70% power savings—Intel partner (Crunchbase, November 2023).
These are real deals you can find on Crunchbase and TechCrunch. Look for founders with experience from Intel or NVIDIA on LinkedIn—they know how to build chips that win.
Risks to Watch Out For
Analog computing’s awesome, but it’s not perfect. Here’s what I’m keeping an eye on:
Limited Uses: Analog chips are great for specific AI tasks but 10% less flexible for general jobs (IEEE Spectrum, January 2025). Mythic needs to stick to edge devices like drones.
Big Competition: NVIDIA’s worth $3 trillion and controls 80% of AI chips (Forbes, March 2025). Syntiant needs major customers to compete.
Money Needs: Chip startups spend $15 million a year—smaller rounds like Anaflash’s $10 million might run dry fast (PitchBook, March 2025).
Production Delays: Even analog chips face some factory delays, though less than digital—TSMC’s booked solid (Bloomberg, February 2025).
To play it safe, focus on startups with real customer deals, like Mythic’s drone partnerships or Anaflash’s Samsung pilot, and check Crunchbase for their latest funding.
My Game Plan for You
Here’s how to jump into analog computing and make big profits:
Find Analog Chip Startups: Look for companies building chips for edge AI, like Mythic or Rain AI—$1.2 billion in deals shows it’s hot (PitchBook, January 2025).
Check Customer Deals: Make sure they have contracts, like Syntiant’s Amazon deal or Rain AI’s IoT pilots. Crunchbase or company websites will show these.
Invest Early: Put $5-10 million into startups valued at $30-50 million, like Anaflash’s $30 million deal—they could grow 5 times bigger (Crunchbase, February 2025).
Look for Factory Deals: Startups with TSMC or Intel partnerships, like EnCharge AI’s Intel tie, avoid delays (Crunchbase, November 2023).
Spread Your Bets: Mix investments in Mythic AI ($50 million), Rain AI ($80 million), and Syntiant ($200 million) to lower risks from NVIDIA’s dominance.
The AI chip crunch is your chance to make 5-10x profits with startups like Mythic AI or Rain AI.
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Stay sharp,
Eden Djanashvili
Author Invest Deeptech