Ethernovia Raises $90M to Power the ‘Physical AI’ Revolution
▼ Summary
– Investors and companies are directing AI funding toward “physical AI” technologies like robotics and autonomous vehicles.
– This trend is benefiting behind-the-scenes suppliers, such as processor makers, that enable these technologies.
– Ethernovia, a maker of Ethernet processors for sensor data in systems like autonomous vehicles, raised a $90 million Series B.
– The round was led by Maverick Silicon, a new AI-focused fund from Maverick Capital, marking its first sector-specific fund in 30 years.
– Increased attention and funding for under-the-radar companies like Ethernovia is expected to continue as investors seek to advance physical AI.
A significant shift is underway as the surge in artificial intelligence investment begins to fuel the foundational technologies enabling real-world applications. This movement, often termed ‘physical AI,’ is directing capital toward the critical hardware and infrastructure companies that make advanced robotics and autonomous systems possible. These suppliers are essential for turning conceptual AI into functional, tangible products that interact with the physical world.
Ethernovia stands as a prime example of this trend. The San Jose-based firm recently secured a substantial $90 million in a Series B funding round. The company specializes in designing sophisticated Ethernet chipsets. These processors are engineered to efficiently gather vast amounts of data from a network of sensors, such as those in a self-driving car, and transport that information at high speed to a central computing unit for real-time analysis and decision-making.
While Ethernovia previously counted Porsche SE and Qualcomm Ventures among its investors, this latest round was spearheaded by a new and notable player: Maverick Silicon. This fund represents a strategic pivot for its parent firm, Maverick Capital, marking the first time in its three-decade history that the hedge fund has launched a fund dedicated to a single sector. The creation of this AI-focused investment vehicle in 2024 signals a deepening commitment to the space.
The involvement of a major financial institution like Maverick Capital, through a dedicated fund, underscores the growing investor appetite for companies operating in the essential, though less visible, layers of the AI ecosystem. Rather than focusing solely on flashy software applications, there is a clear recognition that the true enablement of physical AI depends on robust, high-performance hardware. Ethernovia’s technology addresses a core bottleneck in systems like autonomous vehicles, where the rapid and reliable movement of sensor data is non-negotiable for safety and functionality.
This funding event is likely a bellwether for the year ahead. As the physical AI sector matures, expect increased attention and capital to flow to these enabling technology providers. Investors are systematically looking beyond application-layer startups to bolster the underlying architecture that makes complex AI-driven machines a reality. For companies like Ethernovia, this means greater resources to scale production, refine their silicon designs, and accelerate adoption across automotive and other industrial robotics markets. The race to build the intelligent machines of the future is increasingly being won by those who build the nervous systems that allow them to perceive and react.
(Source: TechCrunch)
