SiMa.ai raises $150M at $1.45B Valuation for Physical AI Chips
▼ Summary
– SiMa.ai secured $150 million in Series C funding, raising its valuation to $1.45 billion.
– The investment round was co-led by Fidelity Management & Research Company and Amplify with participation from multiple other firms.
– The company positions its hardware as a lower-power alternative to Nvidia GPUs for edge AI applications in robots and cars.
– Proceeds will fund the scaling of Palette Neat software and new hardware expected in early 2028 offering high compute performance.
– SiMa.ai reported quadrupled revenue growth between 2024 and 2025 while serving major industrial partners like Bosch and Micron.
SiMa.ai secures $150 million in Series C funding, pushing its corporate valuation to $1.45 billion. The San Jose-based developer of hardware and software solutions for edge computing announced the financial milestone on Monday. The startup specializes in enabling autonomous vehicles, drones, and robots to execute artificial intelligence tasks directly on local devices rather than relying on cloud infrastructure.
Fidelity Management & Research Company and Amplify served as co-leads for the investment round. Additional participants included Alter Venture Partners, Dell Technologies Capital, Maverick Capital, +ND Capital, Point72, and StepStone Group. Several entities made their first investment in the company during this cycle, including AllianceBernstein, Baron Capital, J. P. Morgan, and the State of Michigan. This latest infusion brings SiMa.ai’s cumulative capital raised to $500 million. According to PitchBook data cited by TechCrunch, the firm was valued at $960 million following an $85 million Series B completion in July 2025.
The company positions its technology as a cost-effective and energy-efficient alternative to Nvidia GPUs for applications involving physical AI. This term describes machinery that perceives and interacts with the physical environment. SiMa.ai claims its integrated platform reduces development cycles from months down to hours or days.
“While others are still figuring out the pieces or repurposing their cloud offerings, we’ve built the entire puzzle,” stated Krishna Rangasayee, founder and chief executive officer of SiMa.ai. Rangasayee established the business in 2018 after serving as chief operating officer at chipmaker Groq.
Scaling Hardware and Software Development
Investors will utilize the fresh capital to expand Palette Neat, the firm’s agentic software ecosystem designed for developers. Funding will also support upcoming hardware releases scheduled for the first half of 2028. These future products aim to provide 1,000 dense TOPS of computational power. Trillions of operations per second (TOPS) serves as a standard metric for evaluating AI chip efficiency.
The forthcoming lineup features machine learning intellectual property, chiplets, and systems-on-chip architectures. Target markets include humanoid robotics, drone navigation, advanced driver assistance systems, and intelligent automotive interiors. SiMa.ai reported that revenue growth tripled between 2024 and 2025, though specific financial figures remain undisclosed. Established partners and clients encompass Bosch, Emerson, Micron, Synopsys, and TRUMPF.
The broader sector for edge AI chips has seen significant consolidation and activity recently. Analog Devices committed $1.35 billion to acquire edge AI specialist Alif earlier this year. Additionally, NEURA and SECO have announced plans to manufacture robotic compute modules within Europe, highlighting the intense global competition for efficient on-device processing capabilities.
(Source: The Next Web)
