Silicon Valley-based Fabric Cryptography has successfully raised $33 million in a Series A funding round, with Blockchain Capital and 1kx leading the investment. Key players in the crypto sector, including Offchain Labs, Polygon, and Matter Labs, also participated.
This follows a $6 million seed round led by Metaplanet, which previously invested in Granza Bio and Hume AI, alongside Inflection and Liquid2 Ventures. With this latest round, Fabric Cryptography‘s total funding now stands at $39 million.
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Strategic Use of Funds
The new capital will be directed towards advancing the next generation of Fabric’s Verifiable Processing Unit (VPU) chips. The company will also expand its software and cryptography teams to meet the growing demand for secure and efficient cryptographic operations. This expansion includes the development of additional software and cloud infrastructure to support the innovative VPU technology.
“We are incredibly excited to collaborate with Fabric Cryptography as they work to revolutionize cryptographic operations with the world’s first VPU. Their mission to integrate privacy and verifiability into all digital systems aligns perfectly with our vision,” said Yuan Han Li, an investor at Blockchain Capital.
Dr. Wei Dai, cryptographer and research partner at 1kx, added, “The VPU’s programmability, flexibility, and performance set it apart. It is designed to efficiently handle a wide range of cryptographic workloads and is adaptable to future cryptographic algorithms, making it a truly future-proof solution.”
Addressing a Critical Need in Cryptography
The development of advanced cryptographic algorithms has outpaced the capabilities of existing processing units like CPUs and GPUs, which are not optimized for the intensive mathematical computations required in modern cryptography. Fabric Cryptography’s VPU is the first custom silicon chip designed specifically for cryptography, offering a tailored instruction set architecture to handle these complex algorithms more efficiently.
About Fabric Cryptography
Founded by Michael Gao and Tina Ju, both MIT and Stanford dropouts, along with hardware experts like Sagar Reddy, Fabric Cryptography is pioneering the development of the VPU. This new processing unit aims to do for cryptography what Nvidia’s GPUs have done for AI, enabling the rapid processing of advanced cryptographic workloads such as Zero-Knowledge Proofs (ZKPs), Fully-Homomorphic Encryption (FHE), and Multi-Party Computation (MPC).
As Fabric Cryptography prepares to bring the VPU into production later this year, the company is set to significantly reduce the cost and increase the speed of running advanced cryptographic processes compared to current solutions like CPUs, GPUs, and fixed-function cryptography accelerators.
Looking ahead, Fabric Cryptography plans to expand its hardware platform to support applications in AI, finance, medtech, and more. The company’s long-term vision is to create a versatile, general-purpose chip capable of adapting to any cryptographic algorithm, thereby embedding privacy and trust into every digital interaction.
“Supporting the most ambitious cryptographic ideas is central to our mission,” said Michael Gao, Co-Founder and CEO of Fabric Cryptography. “Our goal is to accelerate the adoption of next-generation cryptography by achieving exponential advances across both hardware and software. Success for us means making trust and privacy foundational elements of all digital interactions.”
