Fabric Cryptography, founded by Michael Gao and Tina Ju, aims to democratize modern cryptographic techniques to address the growing tension between trust and privacy in the data-driven age. The startup has developed a custom RISC-V-based chip called a “verifiable processing unit” (VPU) optimized for running algorithms like zero-knowledge proofs and fully homomorphic encryption. These innovations have captured the attention of VCs, with Blockchain Capital and 1kx leading a $33 million Series A funding round.
The Need for Custom Hardware
The co-founders argue that existing hardware is too slow to make fully homomorphic encryption ubiquitous, necessitating the development of specialized chips like the VPU. With significant investments from crypto-focused investors, Fabric is poised to disrupt the cryptography landscape and bring privacy and verifiability to all digital systems. While targeting enterprises, the blockchain space represents the immediate market for Fabric’s solution, especially with the rising demand for zero-knowledge proofs.
Gao emphasizes the parallels between zero-knowledge proofs and fully homomorphic encryption with the exponential compute demand observed in AI during the 2010s. Fabric envisions a future where pervasive cryptography becomes standard in the enterprise, fueled by hardware acceleration. The company’s extensive preorders signal a strong market demand for enhanced data privacy and security solutions, particularly in industries burdened by regulatory compliance and data protection concerns.
Gao’s background in ambitious hardware startups, including Luminous Computing and Katana, has prepared him for the challenges of developing cutting-edge technologies. The couple’s experience at Luminous highlighted the disparity between the promise of AI and its commercial applications, prompting a pivot towards cryptography. Fabric’s transition from Fabric Systems to Fabric Cryptography reflects a strategic evolution towards a more specialized and impactful market niche.
Future Prospects and Expansion
As Fabric prepares to tape out its first chips, the startup plans to leverage its recent funding to advance chip development and scale its cryptography and software teams. The long-term goal involves integrating Fabric’s chips into enterprise data centers and potentially securing partnerships with hyperscale cloud providers. By offering a comprehensive suite of hardware and software solutions, Fabric aims to catalyze a paradigm shift in how data is encrypted, processed, and exchanged in digital ecosystems.
Fabric Cryptography’s innovative approach to data privacy and cryptographic operations has positioned the startup as a frontrunner in the burgeoning field of secure computing. With a strong foundation in custom hardware design and a clear vision for mainstream adoption, Fabric is poised to reshape the digital landscape by empowering enterprises with robust encryption capabilities.