XLight, a startup developing advanced lasers for semiconductor manufacturing, is in talks to raise $350 million in funding from a pair of investment firms just weeks after receiving substantial investment from the U.S. Department of Commerce, according to the company’s verbal and written pitch to prospective investors.

The company wants to reduce the cost and time needed to make the most advanced AI server chips by developing an alternative approach to extreme ultraviolet lithography, the process of beaming UV light to print microscopic patterns onto the chips. It’s aiming to sell the technology to ASML, whose EUV machines produce critical material for the chip systems of Nvidia and other top chip designers.