Physical AI startup SiMa.ai raises $150M in Series C

Physical AI startup SiMa.ai has secured $150 million in Series C funding led by Fidelity Management & Research Company and Amplify. This investment, coupled with participation from Alter Venture Partners and Dell Technologies Capital, values the company at $1.45 billion and brings its total funding to $500 million. SiMa.ai's funding will be allocated towards expanding its agentic software platform, Palette Neat, and developing hardware products including machine learning IP, chiplets, and system-on-chips (SoCs).

SiMa.ai's Founder and CEO, Krishna Rangasayee, emphasizes the immense potential of Physical AI in humanoid robotics, automotive, and drone technologies, estimating this market to be worth $50 trillion. He asserts that SiMa.ai has a fully developed solution, unlike competitors still refining their approaches or repurposing cloud offerings.

Founded in 2018, SiMa.ai specializes in enabling devices such as drones, robots, and vehicles to execute AI applications independently of cloud infrastructure. This capability reduces costs and latency. The company reports a four-fold revenue increase year-on-year from 2024 to 2025 and anticipates continued growth in 2026. SiMa.ai's hardware and software solutions are designed to process AI workloads locally on physical edge devices, significantly cutting deployment times from months to just hours.

Mike Dauber, a General Partner at Amplify Partners, commends SiMa.ai's clear and transformative vision, highlighting the company's innovation in building a novel architecture for Physical AI where software controls the silicon. This approach accelerates the deployment of advanced AI models on edge devices, thereby expediting the market entry for sophisticated autonomous systems.