Next-gen synthetic diamond cooling tech for chips could secure CHIPS Act backing

Claims of 10-20°C GPU temp drops and 40% less energy use

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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.

The company hasn't shared a lot of details, but the gist seems to be they are fusing synthetic diamond with materials like gallium nitride to create diamond-based semiconductor wafers and packages. One slide claims their tech could reduce GPU hotspot temperatures by 10-20°C, saving data centers serious cash on cooling while preventing thermal throttling. Even bigger numbers are touted for specific GPU-on-diamond designs, with up to 60% lower temperatures and 40% less energy use.

Those are some spicy claims that we'll have to take with a grain of salt for now. Still, Akash must have shown enough credibility to get initial approval from the very selective CHIPS Act program. It comes at an opportune time too – CEO Felix Ejeckam told Axios that VC firms have been reluctant to back semiconductor startups, a problem the pandemic helped expose with its chip shortages.

Axios reports that Akash spent over a year trying to secure the CHIPS Act funding, even negotiating with labor unions it felt could sway the Biden administration. The startup had previously raised $18 million from VCs, but Ejeckam says the non-dilutive government funding was appealing.

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Of course, this is still just an initial agreement. Plenty of bureaucracy and negotiations remain before any money actually changes hands.

Akash Systems is far from the only party attempting to improve data center cooling as the industry balloons, taking energy consumption to new highs with it. Earlier this month, researchers from the University of Texas unveiled a new thermal interface material that outperformed the best commercial liquid metal cooling products by a staggering 56-72%.

_{Masthead credit: Akash Systems}