Tuesday · October 20, 2026

 ·  Daily  ·  Newsletters

Resonance network: Quantum InsiderSpace Insider

PowerLattice Raises $25M to Break the AI Power Wall

Insider Brief

  • PowerLattice emerged from stealth with $25 million in Series A funding to launch its power delivery chiplet, which brings power directly into processor packages and cuts compute power needs by more than 50%, effectively doubling performance.
  • Its technology addresses the growing energy crisis in AI data centers by shortening power paths, reducing energy loss, and enabling reliable, scalable power delivery for next-generation GPUs, CPUs, and accelerators.
  • With silicon already produced and engineering samples underway, PowerLattice is positioned to reshape AI infrastructure, backed by founders with decades of semiconductor expertise and major investors including Playground Global and Celesta Capital.

PRESS RELEASE — PowerLattice, the company reimagining power delivery for next-generation AI accelerators, announced its emergence from stealth with $25 million in Series A funding jointly led by Playground Global and Celesta Capital. The company’s breakthrough power delivery chiplet tightly couples power and compute, reducing total compute power needs by more than 50%, effectively doubling performance. PowerLattice has raised $31 million in funding to date.

“Power is the defining challenge for AI’s future,” said Peng Zou, Co-Founder, CEO and President of PowerLattice. “Data centers are already starting to hit a power wall and the problem is only going to get worse if we don’t rethink how chips are powered. By bringing power directly into the processor package, we’re delivering the performance and efficiency AI needs to keep scaling beyond today’s limits.”

“AI is not constrained by capital, it’s constrained by power,” said Pat Gelsinger, General Partner, Playground Global. “PowerLattice represents a dramatic breakthrough in the efficiency and scale of power delivery. This is the kind of generational leap Playground backs: technology that doesn’t just advance chips, but reshapes the entire trajectory of computing.”

“PowerLattice is delivering a truly scalable solution to attack the cost-performance, reliability and cooling bottlenecks throttling AI data centers,” said Dr. Steve Fu, Partner, Celesta Capital. “I know exactly how tough this problem is, having previously led power device and system incubation at global semiconductor leaders and watching two decades of attempts fall short of the real potential. It is why we zeroed in on this opportunity in our thesis at Celesta — and why we believe PowerLattice’s solution is the unlock the industry has been waiting for.”

Reimagining Power for AI

AI accelerators and GPUs are pushing past 2 KW per chip, straining data centers that already consume as much energy as mid-size cities. Conventional power delivery forces very high electrical current to travel long, resistive paths before reaching the processor, wasting energy and limiting performance. Without a new approach, data center energy use could triple by 2028, consuming up to 12% of U.S. power supply and creating a barrier for AI to scale.

PowerLattice is breaking through this power wall by delivering power much closer to where compute happens. The company has developed the industry’s first power delivery chiplet, bringing power directly into the processor package. Combining proprietary miniaturized on-die magnetic inductors, advanced voltage control circuit innovations, a vertical design and a programmable software layer, PowerLattice’s chiplet tightly couples power and compute, delivering power precisely where and when it’s needed.

Impact and Readiness

PowerLattice’s chiplet integrates easily into existing system-on-a-chip (SOC) product designs, shrinking the overall processor footprint and dramatically shortening the power path. As a result, PowerLattice:

  • Unlocks chip performance: PowerLattice lifts the power ceiling, reduces power-related throttling and increases compute utilization, effectively doubling performance and enabling significantly more AI computation per rack.
  • Cuts the AI power bill: By tightly coupling power and compute, PowerLattice dramatically reduces energy loss, lowering compute power needs by more than 50%.
  • Delivers AI-grade reliability: As AI clusters scale to hundreds of thousands of GPUs and accelerators, PowerLattice delivers power with the consistency, precision and stability needed to ensure optimal performance and system longevity.

With silicon already in hand and engineering samples in progress for 1 KW+ GPUs, CPUs and accelerators, PowerLattice is delivering the performance, efficiency, and reliability that next generation AI and data center infrastructure demands.

A Founding Team with Decades of Expertise

PowerLattice was founded by Peng Zou, Gang Ren, and Sujith Dermal, who together bring decades of engineering leadership in integrated magnetics, analog IC, power management and system design, with experience at Qualcomm, NUVIA, Intel, and a portfolio of issued and pending patents. Joining the board are Pat Gelsinger, General Partner at Playground Global, and Dr. Steve Fu, Partner at Celesta Capital, underscoring the strategic importance of PowerLattice’s technology to leaders across the semiconductor ecosystem.

About PowerLattice

PowerLattice is reimagining power delivery for next-generation AI accelerators with the industry’s first power delivery chiplet. PowerLattice tightly integrates power and compute, delivering power precisely where and when it’s needed to achieve the breakthrough performance, efficiency and reliability that next-generation AI and data center infrastructure demands. The company is backed by Playground Global and Celesta Capital and is headquartered in Vancouver, WA, with additional offices in Chandler, AZ. PowerLattice has raised $31M in funding to date.

About Playground Global

Playground Global is a deep tech venture capital firm with $1.2 billion under management, backing early-stage startups tackling foundational challenges in next-generation compute, automation, energy transition, and engineered biology. Founded in 2015 and based in Palo Alto, Playground partners closely with technical and scientific founders to turn breakthrough ideas into enduring companies. The firm’s portfolio includes PsiQuantum, MosaicML (acquired by Databricks), d-Matrix, Agility Robotics, Ideon, Ultima Genomics, and Strand Therapeutics. Learn more at www.playground.vc.

About Celesta Capital

Celesta Capital is a global deep tech venture firm backing the breakthroughs that will power the next decade of technology advancement, including semiconductors and intelligent systems, next-gen infrastructure software, and bio-convergence. Led by operator-investors with decades of company building experience, Celesta partners early to help founders turn deep tech ideas into generational companies. Founded in 2013, the firm has made more than 100 investments across strategic deep tech corridors in North America, Asia, and the Middle East. Learn more at http://celesta.vc.

Contacts

[email protected]

SOURCE

Featured image: Credit: PowerLattice

James Dargan
About the author
James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

Trending today

Business & Markets · Enterprise

Figma Debuts Specs Editor to Keep AI Agents On-Brand at First Config India Event

Business & Markets

Labelbox Closes $100M+ in Series E Funding to Advance Reinforcement Learning and Enterprise AI Agents

ai quantum
Technology & Infrastructure · Applications & agents

Anthropic’s Claude Designs More Efficient Quantum Circuits With Automated Feedback

Business & Markets

The Week Ahead in AI: Anthropic Commits to New Public Fund, ‘Small AI’ for Developing Countries, AI’s Massive Debt, Plus Upcoming Earnings from IBM, Meta & More

A close-up of Benjamin Franklin on a United States one hundred dollar bill
Business & Markets

Fragment Raises $12M Series A to Turn Agents into Financial Operators

The AI economy, every weekday morning

The daily briefing on LinkedIn. Free, one tap to follow.

Exclusives

Exclusive

South Korea’s AI G3 Strategy: Decoded

Scale-ups to Watch

10 Switzerland-Based AI Scale-Ups You Need to Know in 2026

network, blockchain, digital, hand, web, community, artificial, intelligence, steering, interfaces, bokeh, future, digitization, transformation, change, blockchain, blockchain, blockchain, blockchain, blockchain, transformation
Exclusive

Why Crypto Could Be AI’s Payment Layer: BlackRock Sees Stablecoins Connecting Commerce and Compute

AI Predictions
Exclusive

Why AI Predictions Often Get The Technology Right But The Timeline Wrong

Scale-ups to Watch

10 CEE & Baltics-Based AI Scale-Ups You Need to Know in 2026

More in Business & Markets

Latest from the same section
Technology & Infrastructure · Models & LLMs

Skyfall AI Unveils Frontier Engineering World Model SKY-001

3 hours ago
Business & Markets · Startups

Dream Labs Raises $90M in Seed Funding to Build Foundation Models for Any Robot

5 hours ago
Business & Markets · Startups

Canada’s Promise Robotics Signs Multi-Year Deal With US Homebuilder DR Horton for Robotic Homebuilding

2 days ago
Physical AI · Humanoids

Japan’s Shimizu Invests in Noble Machines to Develop Humanoid Robots for Construction

3 days ago

The AI economy, every weekday morning

The daily briefing plus the weekly Scale-ups to watch edition. Free, no spam, unsubscribe any time.