Insider Brief
- SiMa.ai raised $150 million in Series C funding at a $1.45 billion valuation, bringing its total funding to $500 million as it expands its physical AI platform for humanoids, automotive systems and drones.
- Fidelity Management & Research Company and Amplify co-led the oversubscribed round, with participation from existing investors and new backers including AllianceBernstein, Baron Capital, J.P. Morgan and the State of Michigan.
- The funding will support expansion of SiMa.ai’s Palette Neat software environment and development of next-generation hardware planned for the first half of 2028 with up to 1,000 dense TOPS of compute.
SiMa.ai announced raising $150 million in Series C funding at a $1.45 billion valuation as the chip and software company looks to expand its physical AI platform across humanoid robots, vehicles and drones.
Fidelity Management & Research Company and Amplify co-led the oversubscribed round, and the financing brings San Jose, Calif.-based SiMa.ai’s total funding to $500 million, according to the company. Existing investors Alter Venture Partners, Dell Technologies Capital, Maverick Capital, +ND Capital, Point72 and StepStone Group also participated, while AllianceBernstein, Baron Capital, J.P. Morgan and the State of Michigan joined as new investors.
What’s Next?
The company indicated the new capital will be used in part to scale Palette Neat, SiMa.ai’s software environment for developing and deploying physical AI applications.
SiMa.ai noted the hardware is being designed for applications including medium- and high-end drones, humanoid robots, advanced driver-assistance systems and AI-powered vehicle cockpits. Customers using its current technology will be able to migrate their applications to the next-generation architecture.
The company also plans to fund its next generation of hardware that is scheduled for the first half of 2028. Those products are expected to include machine-learning intellectual property, chiplets and systems-on-chip capable of delivering 1,000 dense tera operations per second, or TOPS, a measure of AI computing performance.
“Physical AI in humanoids, automotive, and drones is the gateway to a $50 trillion market that has remained largely untouched by modern innovation,” founder and CEO Krishna Rangasayee said in the announcement. “While others are still figuring out the pieces or repurposing their cloud offerings, we’ve built the entire puzzle. This investment will further catapult us into a dominant position, giving us the resources to scale our purpose-built platform and secure an undeniable lead in the Physical AI race.”
SiMa.ai reported that its revenue quadrupled year over year between 2024 and 2025 and that it continues to see revenue growth in 2026. Its customer and partner network includes ARK Electronics, AVerMedia, Bosch, Emerson, Intrinsic, Kontron, L&T Technology Services, Micron, STIGA, Synopsys, TRUMPF SE and Virya Autonomous Technologies.
