Taalas Launches Custom AI Chip HC1, Achieving Tenfold Improvement Over Current Speed Standards
In Brief
Taalas has launched HC1, a custom chip optimized for a single AI model, delivering responses up to 100 times faster than standard hardware.
AI hardware startup Taalas introduced HC1, a custom chip designed to run a single AI model at unprecedented speed, potentially redefining the economics and latency of artificial intelligence. The chip permanently embeds Meta’s Llama 3.1 8B model into hardware, bypassing general-purpose software-based implementations, and delivering responses in under 100 milliseconds while consuming a fraction of the power and cost of conventional systems.
While Llama 3.1 is relatively small and outdated compared with frontier models, the significance lies in the underlying technology. Taalas’ platform can reconfigure chips for new AI models within months, with plans for a more advanced, higher-density option by winter. The startup’s first-generation HC1 chip achieves approximately 17,000 tokens per second per user, nearly ten times faster than current standards, while reducing build costs twentyfold and energy usage tenfold.
Taalas’ approach addresses two major barriers to widespread AI adoption: latency and operational cost. Traditional AI models require large-scale infrastructure, extensive energy, and slow inference times, limiting practical deployment for applications that demand real-time responses, such as agentic AI and interactive workflows. By hardwiring models into specialized silicon and merging storage with computation, Taalas eliminates bottlenecks that have historically constrained AI performance.
Taalas Leverages Specialized Silicon And Streamlined Hardware To Deliver Ultra-Fast, Low-Cost AI Inference
The startup’s design philosophy prioritizes full model specialization, simplification of the hardware stack, and integration of storage and compute on a single chip. This methodology allows Taalas to deliver step-change improvements in speed, efficiency, and cost, without relying on complex technologies such as liquid cooling, high-bandwidth memory, or advanced packaging.
Founded 2.5 years ago, Taalas has grown a small, experienced team of 24 core engineers, supported by external partners, and raised over $200 million in total funding, including $169 million in the latest round. The company emphasizes disciplined focus and precise engineering over scale and hype.
Looking ahead, Taalas plans to expand its product lineup with a mid-sized reasoning model expected this spring and a frontier LLM using its second-generation silicon platform (HC2) later in the year. The company aims to place ultra-low-cost, sub-millisecond AI inference into developers’ hands, enabling applications previously impractical due to latency and cost.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
