Those are some spicy claims that we'll have to take with a grain of salt for now. Still, Akash must have shown enough credibility to get initial approval from the very selective CHIPS Act program. It comes at an opportune time too – CEO Felix Ejeckam told Axios that VC firms have been reluctant to back semiconductor startups, a problem the pandemic helped expose with its chip shortages.
Axios reports that Akash spent over a year trying to secure the CHIPS Act funding, even negotiating with labor unions it felt could sway the Biden administration. The startup had previously raised $18 million from VCs, but Ejeckam says the non-dilutive government funding was appealing.