Untether AI files for bankruptcy following AMD talent acquisition deal

Toronto-based Untether AI Corporation, once a promising manufacturer of hardware and software for artificial intelligence applications, with their primary product being energy-efficient chips, made an assignment in bankruptcy on October 15, 2025. PricewaterhouseCoopers Inc. has been appointed bankruptcy trustee, with Goodmans LLP acting as trustee counsel.

Founded in 2018, Untether developed custom AI processors designed to dramatically reduce energy consumption by positioning memory and compute elements side-by-side—a departure from traditional chip architectures. The company targeted industrial, robotics, and autonomous vehicle markets before pivoting toward data-centre inference chips amid the surge in generative AI demand.

The company raised approximately $150 million from investors including Intel Capital, Radical Ventures, GM Ventures, and the Canada Pension Plan Investment Board, but reportedly struggled to compete against industry giant Nvidia Corp., whose dominance in AI data-centre hardware intensified after the release of ChatGPT.

In June, Untether entered into a deal which saw Advanced Micro Devices acquire a large portion of its employee base, and wound down its operations thereafter. The company’s intellectual property is not believed to have formed part of the deal.

Its statement of affairs lists liabilities of $128.6 million, including $14.8 million to CPP Investment Board Private Holdings (4) Inc., a collective US$18.3 million to a couple of General Motors Ventures entities, $33 million to Middlefield Ventures, Inc., a collective $28.5 million to a couple of Radical Ventures Fund entities, and $20 million to TCM-Untether Holdings LLC.