Melbourne Uni AI spinout i14 raises $6.31M to challenge transformers
What's the deal? i14Dealroom has a profile for this one. Try Dealroom →, an artificial intelligence lab spun out of the University of Melbourne, has raised US$5.82M in an early-stage round led by Salus VenturesDealroom has a profile for this one. Try Dealroom →. Tin Alley VenturesDealroom has a profile for this one. Try Dealroom →, superannuation fund HostplusDealroom has a profile for this one. Try Dealroom →, London-listed IP GroupDealroom has a profile for this one. Try Dealroom →, Archangel VenturesDealroom has a profile for this one. Try Dealroom →, and Virescent VenturesDealroom has a profile for this one. Try Dealroom → also took part.
What's the endgame? Founded in June last year by Tom McLeod, Simon Dennis, Kevin Shabahang, and Michael Diamond, i14 builds an alternative to transformers — the neural networks behind large language models. It says its architecture does the same work using a fraction of the chips and energy, and can be embedded into existing models.
Why now? The raise lands amid a global chip and memory shortage. i14 is targeting neoclouds, hyperscalers, and heavy AI users looking to cut compute costs.
"The world is building data centres as fast as it can, and it still can't keep up with demand for AI," McLeod said. "Our architectures do the same work with far fewer chips and far less energy. That changes the economics of AI, and it means companies can own and run their own frontier models."
By the numbers: The round sits around the 34th percentile for deals of its type by size — a modest raise rather than a headline one. The founders have kept a significant stake and are weighing a second raise in about six months.
The signal: As data-centre buildouts strain supply of chips and power, efficiency-focused challengers to the transformer are drawing investor interest. For i14, the pitch is economic: deliver frontier performance without the escalating hardware bill.
Read more: afr.com
Image credit: cbowns
