This is just an initial agreement and not a done deal, but it marks an important first step. According to Akash, the money would go toward ramping.
What just happened? Akash Systems, an Oakland-based startup, has landed a preliminary deal with the US government for major funding under the CHIPS Act. The company, which is developing diamond-based cooling technology for semiconductors, has signed a non-binding memorandum with the Department of Commerce. If finalized, it would net Akash $18.2 million in direct funds and $50 million in federal and state tax credits.
This is just an initial agreement and not a done deal, but it marks an important first step. According to Akash, the money would go toward ramping up production of its diamond semiconductor solutions for AI, data centers, space tech, and defense applications.
As for what diamond chips offer, diamond is an exceptional thermal conductor. Akash aims to overcome one of the biggest bottlenecks in modern computing – keeping hot chips cool enough to operate at peak performance – by using synthetic diamond substrates or integrating diamond into semiconductor materials.
