SiMa.ai has secured US$150 million in Series C financing, pushing its valuation to US$1.45 billion as the semiconductor company accelerates development of technology designed to bring artificial intelligence into robots, vehicles and drones.
The investment takes total funding to US$500 million and positions the company to expand its purpose-built Physical AI platform as demand grows for computing systems capable of running advanced AI outside conventional data centres.
Fidelity Management and Research Company and Amplify co-led the round, with backing from Alter Venture Partners, Dell Technologies Capital, Maverick Capital, +ND Capital, Point72 and StepStone Group. New investors included AllianceBernstein, Baron Capital, J.P. Morgan and the State of Michigan.
The financing comes as AI increasingly moves beyond cloud-based software into machines operating in physical environments. Counterpoint Research projects cumulative shipments of Physical AI devices, including robotics, automotive systems and drones, will reach 145 million units by 2035.
That expansion is creating demand for specialised processors capable of delivering sophisticated AI performance within tight power, size and operating constraints. SiMa.ai is targeting those requirements with an integrated platform combining dedicated silicon and software, challenging approaches that rely on power-intensive GPUs.
Unlike cloud-based AI, these systems must respond to changing surroundings without depending on continuous network connectivity. That places additional pressure on chip designers to balance inference speed, energy consumption, reliability and ease of software deployment at scale.
“Physical AI in humanoids, automotive, and drones is the gateway to a $50 trillion market that has remained largely untouched by modern innovation,” said Krishna Rangasayee, Founder and CEO, SiMa.ai.
The company said the funding would support expansion of Palette Neat, its agentic software environment for Physical AI, alongside development of next-generation processors designed to deliver 1,000 dense TOPS of computing performance.
Its hardware roadmap includes machine learning intellectual property, chiplets and systems on chips, with new products scheduled for the first half of 2028. Target applications include humanoid robotics, medium and high-end drones, advanced driver assistance systems and AI-powered vehicle cockpits.
SiMa.ai said existing customers would be able to migrate applications to the forthcoming architectures, potentially reducing the cost and complexity of adopting more powerful systems.
The company also pointed to commercial momentum, reporting that its year-over-year revenue growth quadrupled between 2024 and 2025. It expects continued growth during 2026, although it did not disclose revenue figures in the announcement.
Its customer and partner network includes Bosch, Emerson, Intrinsic, Kontron, Micron, Synopsys, TRUMPF SE, AVerMedia, STIGA and other industrial and technology companies.
Investors framed the financing as a bet on computing infrastructure moving closer to where machines collect data and make decisions.
“One of our core priorities at Dell Tech Capital is to back foundational technologies that bridge the gap between the data center and the far edge,” said Scott Darling, President and Managing Director, Dell Technologies Capital.
The challenge now is translating investment and ambitious performance targets into commercially deployed hardware. With new chips not expected until 2028, SiMa.ai faces a crucial period of execution as competition intensifies across the emerging Physical AI market.
