Physical AI startup SiMa.ai raises $150 million in Series C funding at $1.45 billion valuation

Physical AI startup SiMa.ai has secured $150 million in Series C funding at a $1.45 billion valuation, aiming to grow its AI hardware and software platform.

Related: Enterprise AI startup Ema raises $77 million in Series B funding led by Creaegis

SiMa.ai, a Physical AI startup, has secured $150 million through a Series C funding round, reaching a valuation of $1.45 billion. Fidelity Management & Research Company and Amplify jointly led the oversubscribed round. A number of existing investors took part as well, and AllianceBernstein, Baron Capital, J.P. Morgan, and the State of Michigan came on board as new investors.

With this latest funding, SiMa.ai’s total capital raised now stands at $500 million. The company intends to use the funds to expand its software platform and build next-generation hardware for Physical AI applications.

SiMa.ai creates specialized chips and software built to run artificial intelligence directly on physical devices. Its technology focuses on applications where AI must work near the data source rather than depending entirely on cloud computing.

These applications include:

• Humanoid robots
• Drones
• Automotive systems
• AI-powered vehicle cockpits
• Industrial automation
• Smart vision systems

By merging silicon with software, SiMa.ai seeks to make deploying AI models on edge devices easier while meeting power and latency demands.

This newest investment provides SiMa.ai with extra resources to speed up product development and business growth. The company aims to deliver AI capabilities to machines that require fast, efficient, and on-device computing.

Total Funding Hits $500 Million

Thanks to its newest Series C round, SiMa.ai has brought its total capital raised to $500 million. The $1.45 billion valuation also mirrors rising investor enthusiasm for technologies built for Physical AI and edge computing.

Robust Involvement from Investors

The round was led by Fidelity Management & Research Company and Amplify. Investors already on board, such as Alter Venture Partners, Dell Technologies Capital, Maverick Capital, +ND Capital, Point72, and StepStone Group, took part as well.

AllianceBernstein, Baron Capital, J.P. Morgan, and the State of Michigan joined as new investors.

Physical AI describes artificial intelligence systems that engage with the physical world via machines like robots, drones, and autonomous vehicles.

In contrast to conventional AI applications that primarily function through software, Physical AI must handle sensor data and react swiftly to shifting physical surroundings.

AI at the Edge

SiMa.ai’s technology allows AI workloads to operate straight on edge devices. This method can lessen reliance on cloud connectivity and assist applications in responding with reduced latency.

For robotics, drones, and automotive systems, rapid local processing can be especially crucial, since these devices frequently need to make decisions in real time.

A key element of SiMa.ai’s strategy is Palette Neat, its agentic software environment designed for Physical AI development.

In 2026, the company introduced Palette Neat to make developing and deploying Physical AI applications easier. According to SiMa.ai, the platform can cut development timelines from months down to days or hours by automating portions of the process.

This new funding will support the company’s efforts to keep scaling this software environment.

SiMa.ai likewise intends to put money into its upcoming generation of Physical AI hardware.

Aiming for 1,000 Dense TOPS

The company intends for its next-generation hardware to provide as much as 1,000 dense TOPS of computing performance. SiMa.ai anticipates that these products will be released in the first half of 2028.

The planned hardware lineup will encompass machine learning intellectual property, chiplets, and system-on-chip technologies.

Uses Spanning Numerous Sectors

SiMa.ai intends to extend its technology into a range of Physical AI markets. Among these are mid-range and premium drones, humanoid robotics, automotive advanced driver-assistance systems, and vehicle cockpits driven by AI.

This wide-ranging application approach provides the company with chances to address both industrial and commercial markets.

The company already collaborates with various technology and enterprise organizations. According to SiMa.ai, its customer and partner network features companies including Bosch, L&T Technology Services, Micron, Synopsys, Emerson, and others.

SiMa.ai maintains a presence in India as well. Business Standard reported that the company employs roughly 90 people in India and has observed activity in robotics, drones, and automotive applications.

Physical AI is drawing increasing interest as artificial intelligence expands past computers and cloud-based applications into machines that function in the real world.

Robots, self-driving vehicles, drones, and smart industrial systems all need computing platforms capable of delivering performance while keeping power and latency under control.

SiMa.ai is orienting its technology around this need. Its blend of purpose-built silicon and software is engineered specifically for AI workloads operating on physical devices.

Thanks to its most recent funding, SiMa.ai intends to speed up development on both the software and hardware fronts. The company will keep expanding Palette Neat as it progresses toward its next-generation silicon platform.

Its roadmap also mirrors the company’s wider ambition of making Physical AI simpler to deploy across a range of hardware environments.

As AI adoption spreads into robotics, automotive systems, drones, and industrial applications, firms that build efficient edge computing infrastructure may take on a growing role within the technology ecosystem.

SiMa.ai’s $150 million Series C funding represents yet another significant milestone in the company’s work on Physical AI technology. This round places the startup’s valuation at $1.45 billion and brings its total funding to $500 million.

The company plans to use the new capital to scale Palette Neat, create next-generation hardware, and broaden its reach across robotics, drones, automotive systems, and other edge AI markets. By concentrating on purpose-built silicon and software, SiMa.ai continues to develop technology for a future in which AI runs directly inside machines and physical environments.