SiMa.ai, a physical AI startup, has raised $150 million in a Series C round co-led by Fidelity Management & Research Company and Amplify. The funding values the company at $1.45 billion and will be used to scale its agentic AI platform and develop hardware products.
TL;DR
- SiMa.ai raises $150M in Series C funding, valuing the company at $1.45B.
- The funding will be used to scale the company's agentic AI platform, Palette Neat, and develop hardware products.
- SiMa.ai aims to capture a significant share of the $50 trillion physical AI market.
What happened
SiMa.ai, founded by Krishna Rangasayee, has raised $150 million in a Series C round co-led by Fidelity Management & Research Company and Amplify. The round also saw participation from Alter Venture Partners, Dell Technologies Capital, StepStone Group, AllianceBernstein, Baron Capital, and J.P. Morgan. This brings the company's total funding to $500 million and values it at $1.45 billion.
The fresh capital will be used to scale SiMa.ai's agentic software platform for physical AI, Palette Neat, and develop hardware products such as machine learning IP, chiplets, and system-on-chips (SoCs).
Founded in 2018, SiMa.ai develops technology that enables devices like drones, robots, and vehicles to run AI applications without relying on cloud infrastructure. This can help reduce costs and latency.
Why it matters
Physical AI applications often require specialized computing hardware to process AI workloads locally. SiMa.ai's platform can reduce deployment times from months to days or hours, according to the company.
The $150 million funding round positions SiMa.ai to capture a significant share of the $50 trillion physical AI market, which includes humanoids, automotive, and drones. The company's technology aims to bring modern innovation to this largely untouched market.
SiMa.ai's revenue grew four-fold year-on-year between 2024 and 2025, and the company continues to see strong revenue momentum in 2026. This funding round will provide the resources needed to scale the company's purpose-built platform and secure a leading position in the physical AI race.
Key facts
- SiMa.ai raises $150M in Series C funding, valuing the company at $1.45B.
- The funding round was co-led by Fidelity Management & Research Company and Amplify.
- The company's total funding now stands at $500 million.
- SiMa.ai will use the funding to scale its agentic AI platform, Palette Neat, and develop hardware products.
- The company aims to capture a significant share of the $50 trillion physical AI market.
- SiMa.ai's revenue grew four-fold year-on-year between 2024 and 2025.
- The company's technology enables devices to run AI applications without relying on cloud infrastructure.
- SiMa.ai was founded in 2018 by Krishna Rangasayee.
Context
Physical AI is a growing field that involves the use of AI in physical devices and systems. This includes applications in humanoids, automotive, and drones, among others. The market for physical AI is largely untouched by modern innovation, presenting a significant opportunity for companies like SiMa.ai.
SiMa.ai's technology enables devices to run AI applications locally, reducing costs and latency. This is particularly important for applications that require real-time processing and decision-making, such as autonomous vehicles and drones.
The $150 million funding round positions SiMa.ai to capture a significant share of the physical AI market. The company's purpose-built platform and hardware products are designed to meet the unique requirements of physical AI applications, giving it a competitive edge in this growing market.
