Copper Sky’s Etched Investment Highlights Arizona’s Growing Influence in AI

Arizona's role in the semiconductor industry continues to create opportunities far beyond the state's borders.

A recent TechCrunch report highlighted how Phoenix-based venture firm Copper Sky Capital secured an early investment in AI chip startup Etched, a company developing specialized processors for artificial intelligence workloads. As the company prepares to ship its first production systems, one of the long-term opportunities discussed is the potential to manufacture future chips at TSMC's Arizona facilities.

The investment reflects more than venture capital. It demonstrates how Arizona's expanding semiconductor ecosystem is becoming a strategic advantage for founders building advanced hardware companies.

Copper Sky Capital was founded by Jack Selby, a Silicon Oasis board member, former PayPal executive, and longtime leader at Thiel Capital. Since launching the firm, Selby has focused on connecting high-growth startups with Arizona's rapidly expanding innovation economy.

According to the report, Copper Sky's relationships within Arizona's semiconductor industry helped differentiate the firm when competing to invest in Etched. As Arizona continues attracting advanced manufacturing, engineering talent, and semiconductor infrastructure, those connections are becoming increasingly valuable for startups looking to scale production inside the United States.

The story also illustrates how venture capital is evolving in Arizona. While Copper Sky initially focused on companies throughout Arizona and the Southwest, the firm is now investing nationally while continuing to leverage Arizona as a competitive advantage for portfolio companies. That approach aligns with a broader trend of using the state's manufacturing capacity, business climate, and technical workforce to support startups regardless of where they were founded.

With TSMC continuing to expand its Arizona operations and billions of dollars flowing into the state's semiconductor ecosystem, Arizona is increasingly becoming more than a destination for manufacturing. It is becoming a strategic partner for venture-backed technology companies building the next generation of AI infrastructure.

As Silicon Oasis works to strengthen Arizona's innovation ecosystem, stories like this reinforce an important reality: the state's influence is no longer limited to companies headquartered here. Increasingly, Arizona's relationships, talent, and industrial capabilities are helping shape the growth trajectories of some of the most promising technology companies in the country.

The continued involvement of leaders like Jack Selby demonstrates how Arizona's founders, investors, and ecosystem builders are helping position the state at the center of the next wave of innovation.