AI startup SiMa.ai raises $70 million in funding to introduce new AI chip for generative edge computing

SiMa.ai, a Silicon Valley-based AI chip startup that makes ‘purpose-built’ AI chips for edge computing, has secured an additional $70 million in funding to launch its second-generation chipset, designed specifically for processing multimodal generative AI.

This funding round follows a previous investment of $13 million, which included support from notable investors like VentureTech Alliance and Dell Technologies Capital. Maverick Capital led the latest round, with contributions from Point72, Jericho, and existing backers.

With a total funding of over $200 million, SiMa.ai plans to meet the increasing demand for edge AI/ML solutions. Its current focus is on their first-generation Machine Learning System-on-Chip (MLSoC), while simultaneously working on releasing their second-generation MLSoC by Q1 of 2025.

According to projections by Gartner, the market for AI-supporting chips is expected to more than double by 2027. While initially, the focus was on AI in the cloud, there’s a growing interest in edge AI, where processing occurs closer to the data source. SiMa.ai aims to capitalize on this trend by offering its edge AI SoC to various industries, including manufacturing, retail, aerospace, defense, agriculture, and healthcare.

Founded in 2018 by CEO Krishna Rangasayee, SiMa.ai develops both software and hardware solutions to enable AI algorithms on devices like industrial robots, drones, security cameras, and eventually, self-driving cars. Rangasayee notes the significant market potential in this field, despite the limited competition.

SiMa.ai’s first ML SoC, targeting energy usage between 5W and 25W, combines proprietary hardware with a software platform called Palette. Already adopted by over 50 companies globally, this solution has achieved high performance in various benchmarks, particularly in the realm of computer vision.

As demand grows for their GenAI capabilities, SiMa.ai plans to launch their second-generation ML SoC in early 2025. This new chipset will offer improved multimodal GenAI capabilities while maintaining compatibility with existing frameworks, networks, and sensors.

Rangasayee emphasized the company’s commitment to evolutionary architectural changes while maintaining flexibility and nimbleness. SiMa.ai faces competition from established players like Nvidia and other AI chip startups, but they believe in their approach and the market niche they’re targeting.

This new class of AI chips that run on a few watts also puts SiMa.ai in the company of a host of AI startups, including Hailo Technologies, Mythic, AlphaICs, Recogni, EdgeCortix, Flex Logix, Roviero, BrainChip, Syntiant, Untether AI, Expedera, Deep AI, Andes, and Plumerai, to name a few.

Rangasayee emphasized the company’s commitment to evolutionary architectural changes while maintaining flexibility and nimbleness. SiMa.ai faces competition from established players like Nvidia and other AI chip startups, but they believe in their approach and the market niche they’re targeting.

“AI — particularly the rapid rise of generative AI — is fundamentally reshaping the way that humans and machines work together. Our customers are poised to benefit from giving sight, sound and speech to their edge devices, which is exactly what our next generation MLSoC is designed to do,” Rangasayee said. “We have established undeniable technology leadership with our first generation MLSoC and with that momentum, also recognized the imminent need to equip our customers with one software-centric platform that supports all modalities from computer vision to GenAI. To that end, we’re accelerating our ability to execute and have strengthened our investor base even further with the addition of Maverick Capital, Point72 and others, as we remain laser focused on powering the edge the world relies on.” 

SiMa.ai’s competitors include compnaie like NXP, Texas Instruments, STMicro, Renaissance, and Microchip Technology, along with AI chip startups like Hailo. However, the startup sees Nvidia as its main rival, a sentiment shared by many other AI chip startups.