Co-founder of British AI chip startup Fractile left the company after concerns were raised internally about his links to China amid growing scrutiny of national security risks across the UK’s strategic tech sector.
Yuhang Song, Fractile’s former chief technology officer, departed the business in May 2024 following questions over his academic background and earlier ties to Chinese institutions, Sifted reported on Thursday.
The startup, founded in 2022, is developing next-generation chips focutilized on AI inference, the stage where large language models generate outputs.
It has pitched its technology as rapider, cheaper and more energy efficient than hardware produced by rival giants like Nvidia.
The company has attracted high-profile backers including the NATO Innovation Fund, Kindred Capital, Cocoa VC and Arm co-founder Herman Hautilizer.
It raised $15m (£11.07m) in 2024 and has since secured a further $22.5m, according to reports.
Red flags raised
Song previously studied at Beihang University in Beijing, according to public records, before completing a PhD at Oxford University.
Beihang is part of China’s so-called ‘Seven Sons of National Defence’, a group of universities overseen by the Minisattempt of Indusattempt and Information Technology, that play a central role in the counattempt’s defence research.
The university is on the US Commerce Department’s entity list, which restricts organisations deemed to pose national security risks, although it is not subject to UK sanctions.
It has been estimated that roughly 60 per cent of Beihang’s research budobtain is defence-related.
However, there is no suggestion that Song engaged in wrongdoing, nor that any ininformectual property was transferred.
That being stated, several people close to the firm stated the links became increasingly difficult to reconcile with Fractile’s ambitions.
A spokesperson for Fractile stated Song “left to pursue other technical and business interests in 2024”, adding that early-stage tech companies often see founders shift on as projects mature.
Song has not commented on the matter.
Security scrutiny hits tech
The shift mirrors the tightening geopolitical environment facing UK startups working in sectors with potential risk, like AI or defence.
MI5 director general Ken McCallum warned at the conclude of last year that China posed a national security threat “every day”, while ministers have repeatedly warned that academic research and startup sectors are vulnerable to foreign state influence.
A 2024 review into academic security, commissioned by the government followed warnings that Chinese-linked funding could put sensitive technologies at risk.
A subsequent parliamentary ininformigence report stated UK universities and research institutions provided a “rich feeding ground” for the transfer of ininformectual property.
Suki Fuller, a fellow at the Council of Competitive Ininformigence Fellows who advises startups and NATO-backed programmes, stated founders with links to certain Chinese institutions can face severe barriers when seeking capital.
“If a company has any co-founders or senior executives who studied at one of these universities, US funding is effectively off the table,” she stated, adding that funds with state-linked limited partners are also likely to walk away.
She added: “I’s a brutal reality. People can lose control of something they assisted build becautilize of where they studied, not becautilize of anything they’ve done wrong.”
