SAN FRANCISCO, July 1 (Reuters) - Artificial intelligence

startup Oxmiq said on Wednesday it raised $35 million from

investors in order to build chip design architecture and

software that will lower the cost of building and running AI

applications.

Developing a cutting-edge AI chip can cost hundreds of

millions of dollars and take several years to make the requisite

silicon design plans and necessary software to support it.

Oxmiq's goal is to collapse three distinct components of an AI

system and combine them into a single block of IP that it can

license, Chief Executive Raja Koduri said in an interview.

Typically, AI systems are divided between graphics chips and

central processors. Oxmiq plans to combine both, along with a

third component, a tensor engine, into a single design, he said.

"We would want to be the Arm of this next era," Koduri said,

referring to the U.K. company that supplies the design and IP

for nearly every smartphone in the world.

The company also plans to develop a computing fabric that

includes chiplets - several specific chips combined to form a

complete system - and memory within a single package.

The former Intel chief architect and an ex-AMD

executive, Koduri said that Oxmiq will also get into the custom

chip market, where Broadcom ( AVGO ), Marvell ( MRVL ) and

MediaTek compete.

Oxmiq plans to use the $35 million to finish the first batch

of intellectual property it is working on and make it available

as a product, Koduri said. The company also plans to hire more

engineers as it scales its business.

The Campbell, California, company has raised a total of $60

million, the company said. The $35 million funding round

included investors such as Taiwan's MediaTek and Pegatron

Venture Capital. Samsung Catalyst Fund and Fudomo led the round.