According to Sina Finance, AI chip startup DensityAI is in late-stage funding talks and plans to raise several hundred million dollars, with the round valuing the company at $10 billion. The company was founded a year ago by the former core team behind Tesla's Dojo supercomputer project.

People familiar with the matter said DensityAI has told potential investors it has an agreement under which Amazon Web Services would buy its chips if they meet specified performance targets. One of the people said Andreessen Horowitz is in talks to lead the round.

The report said investor interest in compute-focused startups remains strong even though such chips are still far from mature. Etched, another AI chip startup, completed a $700 million funding round in August led by Jane Street, at a $21 billion valuation.

DensityAI was co-founded by Ganesh Venkataramanan, former head of Tesla's Dojo project, Bill Chang, former chief systems engineer for Dojo, and Ben Florence, former head of Dojo's AI infrastructure team. Tesla had originally hoped Dojo would support the AI software behind autonomous driving, but the company temporarily disbanded the team last summer.