Generative AI startup Liquid AI closes $250 million in early stage funding led by AMD

Generative AI startup Liquid AI announced on Friday that it has raised $250 million in early-stage funding, led by Advanced Micro Devices (AMD), which is also joining as a strategic collaborator.

The funding aims to speed up the development and deployment of Liquid Foundation Models (LFMs), the startup’s compact AI models designed for enterprise use. According to Liquid AI, these models offer a more private, efficient, and reliable alternative for businesses looking to adopt AI solutions.

Spun out of MIT’s CSAIL, Liquid AI was founded by Ramin Hasani, Mathias Lechner, Alexander Amini, and Daniela Rus to develop a new generation of foundation models built from first principles. In a statement, Liquid AI CEO Ramin Hasani said:

“At Liquid, our mission is to build the most capable and efficient AI system at every scale. We are proud that our new industry-leading partners trust our mission; together, we plan to unlock sovereign AI experiences for businesses and users.”

The rise of consumer-focused generative AI, highlighted by the global attention on ChatGPT in 2022, has driven substantial investment in AI startups this year. Billions of dollars have poured into the sector, reflecting its growing influence.

Liquid AI positions its LFMs as smaller and more efficient than the cloud-based AI solutions offered by giants like OpenAI, AWS, and Google Cloud. The collaboration with AMD will allow the startup to optimize these models using AMD’s advanced graphic, central, and neural processing units.

Commenting on the funding and strategic partnership, AMD’s Senior Vice President and Chief Strategy Officer, Mathew Hein, said: “Liquid AI’s unique approach to developing efficient AI models will push the boundaries of AI, making it far more accessible. We are thrilled to collaborate with Liquid AI to train and deploy their AI models on AMD Instinct GPUs and support their growth through this latest funding round.”

The investment will also enable Liquid AI to expand its infrastructure and create customized LFMs for sectors including consumer electronics, biotechnology, telecommunications, financial services, and e-commerce.