Physical AI custom chip startup SiMa.ai Technologies Inc. successfully raised $150 million in a Series C funding round co-led by Fidelity Management & Research and Amplify, with participation from Alter Venture Partners, Dell Technologies Capital, and StepStone Group. According to reports from Business Standard, SiliconANGLE, and The Times of India, the funding brought the company's total capital raised to $500 million and valued the US-based company at approximately $1.45 billion. New investors in the round included AllianceBernstein, Baron Capital, and JP Morgan.
The funding comes as the global market for physical AI devices, including robotics, automotive, and drones, continues to surge as more connected machines are transformed into intelligent interfaces. SiMa.ai differentiates itself by delivering an industry-leading full-stack physical AI platform that combines purpose-built silicon and software to streamline deployments from months to days or hours. The company's platform addresses the historical reliance on expensive, complex, and power-hungry NVIDIA GPUs in the physical AI space, offering a lower-power alternative that includes custom-built silicon and software support.
According to Business Standard, SiMa.ai has demonstrated strong financial performance with quadrupled year-on-year revenue growth between 2024 and 2025. The company serves major clients including AVerMedia, Bosch, L&T Technology Services, Micron, and Synopsys. SiMa.ai currently employs approximately 90 people in India and has seen traction in robotics, drones, and automobiles sectors.
The capital raise will fund scaling Palette Neat, described as the industry's first agentic development environment for physical AI, and building the next generation of its system-on-chip, Modalix, intended for embedded robotics. CEO Krishna Rangasayee announced that the company's Gen 2 platform is in production and currently delivers 50 tera operations per second (TOPS) in performance. The company plans to use the new capital to develop Gen 3 platform capabilities, targeting performance of 1,000 tera ops with new hardware delivery in the first half of 2028.
According to SiliconANGLE and The Times of India, SiMa.ai is positioned to capitalize on what founder and CEO Krishna Rangasayee describes as a $50 trillion market in physical AI applications. The company's platform addresses the transition of AI from software applications into tangible, real-world consumer and industrial hardware. Rangasayee stated that "Physical AI in humanoids, automotive, and drones is the gateway to a $50 trillion market that has remained largely untouched by modern innovation." The next-generation hardware will enable aggressive expansion into medium- to high-end drones, humanoid robotics, automotive advanced driver assistance systems, and AI-powered cockpits.
