FOR IMMEDIATE RELEASE
Reno-Based “Nvidia Rival” Positron Raises $23.5M to Catapult Northern Nevada into the Global AI Race
RENO, N.V. – FEBRUARY 11, 2025 – Positron, a rising force in AI inference technology for artificial intelligence computing, has secured $23.5 million in funding. Backed by Nevada-based VC firm Flume Ventures (whose partners include Sun Microsystems co-founder Scott McNealy and Flume founder Matt Nordby), the company is poised to transform Reno into a hub for next-generation AI infrastructure, reinforcing Nevada’s position as an emerging leader in domestic semiconductor manufacturing and AI technology. Flume’s investment reflects their collaborative, founder-first approach as well as their commitment to empowering entrepreneurs who bring impactful, transformative innovation to the Nevada region and beyond.
While most American chipmakers manufacture overseas—the majority of Nvidia’s chips, for example, appear to be produced in Taiwan—Positron’s supply chain is entirely American, from design to materials and fabrication.
As enterprises contend with Nvidia’s soaring prices and vendor lock-in, Positron delivers a high-performance, energy-efficient alternative. Positron’s first-generation Atlas systems are designed, fabricated, and assembled entirely in the United States, and more cost and energy efficient than Nvidia’s GPUs. Unlike many AI hardware startups that require years and hundreds of millions to reach the market, Positron has achieved rapid deployment by utilizing customized FPGA chips for AI inference, which are now shipping and in use by several U.S. and European customers as they become increasingly wary of relying exclusively on Nvidia as a supplier.
Nevada’s Role in the AI Hardware Revolution
Positron’s status as a homegrown Nevada startup underscores the state’s aggressive push to attract high-tech businesses. EDAWN’s Entrepreneurial Development team has worked closely with Positron’s leadership, connecting the company with investors, statewide funding programs, and critical resources to support its rapid growth.
“Nevada has all the right ingredients to become a global AI and semiconductor powerhouse—business-friendly policies, strong economic incentives, and a growing network of cutting-edge technology companies,” said EDAWN Senior Vice President, Doug Erwin. “Positron’s success highlights the advantages of building and scaling innovative technology companies in a state that actively supports growth, investment, and next-generation industries.”
In recent years, an increasing number of tech companies have sought alternatives to incorporating in Delaware, where traditional corporate structures and regulatory complexities can pose challenges for high-growth startups. Nevada is now emerging as a pro-growth alternative to Delaware, attracting a growing number of tech companies drawn to its lower regulatory barriers, tax advantages, and increasing venture capital activity.
Governor Joe Lombardo also welcomed the announcement, highlighting Nevada’s commitment to fostering AI and semiconductor innovation.
“Nevada is rapidly becoming a premier destination for cutting-edge technology companies like Positron,” said Governor Lombardo. “This investment not only strengthens our state’s position in the burgeoning AI industry, but also brings high-paying jobs and economic growth to our region. We are proud to support Positron as it builds the future of AI hardware right here in Nevada.”
Driving the Future of AI Compute
As Nvidia’s compute costs continue to rise, enterprises are looking for alternatives that deliver better value and efficiency. Positron’s U.S.-made AI chips provide a superior performance-per-dollar and performance-per-watt solution, helping businesses break free from Nvidia’s stranglehold on AI infrastructure.
With strong backing from Nevada’s government and economic development leaders, Positron is playing a pivotal role in transforming Reno into a global AI hub. By anchoring an AI hardware ecosystem in the region, the company is fostering innovation, creating high-tech jobs, and attracting further investment into the state.
Additionally, as the demand for AI computing skyrockets, power consumption is becoming an urgent issue. Unlike Nvidia’s power-hungry GPUs, which strain existing data center infrastructure, Positron’s technology is designed for energy efficiency, making AI more accessible and sustainable for businesses of all sizes.
“With this funding, we’re scaling at a pace that AI hardware has never seen before,” said Mitesh Agrawal, CEO of Positron. “Nevada’s leadership and EDAWN’s support have been instrumental in making this possible, providing us with the resources and connections to grow rapidly while staying true to our mission—delivering AI compute that is faster, cheaper, and built right here in the U.S.”
Fueling Nevada’s AI Future
Positron’s first-generation Atlas systems are already demonstrating 3.5x performance-per-dollar gains over Nvidia’s H100, while consuming significantly less power. With an aggressive roadmap for expansion, the company’s Nevada presence will drive further AI and semiconductor advancements, positioning Reno as a serious contender in the global AI race.
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About Positron:
Positron is redefining AI hardware with its advanced inference systems that deliver unmatched performance, energy efficiency, and scalability. Designed and manufactured entirely in the United States, Positron empowers data centers and enterprises to unlock the full potential of their AI workloads while reducing dependency on Nvidia and achieving greater operational freedom. Learn more at positron.ai.
About EDAWN:
The Economic Development Authority of Western Nevada is a 501(c)6 non-profit organization established in 1983 funded primarily by private investors with support from public partners, committed to supporting, growing, and maintaining a vibrant and sustainable economy in Northern Nevada. For more information, visit: www.edawn.org
Media Contact:
Ava Coulter, EDAWN
Marketing and Communications Specialist
coulter@edawn.org, 702-901-9615