C2i Semiconductors, a Bengaluru-based startup, has secured $15 million in Series A funding led by Peak XV Partners to address the escalating energy demands of AI data centers. The company is developing innovative power management solutions designed to significantly improve efficiency in an industry where electricity consumption is a critical bottleneck. This investment will fuel C2i's mission to redefine power delivery from the grid to the GPU.
Addressing the AI Power Bottleneck
The rapid expansion of artificial intelligence is placing unprecedented strain on global power grids, with data center electricity usage projected to nearly triple by 2035. Current power conversion systems are inefficient, wasting between 15% and 20% of the energy they consume during delivery. This inefficiency not only inflates operational costs but also limits the potential scale of future AI deployments.
C2i addresses this challenge by redesigning power delivery as a unified, plug-and-play system that spans from the grid directly to the core processors. The company claims its architecture can reduce end-to-end power losses by approximately 10 percent, saving about 100 kilowatts per megawatt. This innovation promises significant cost reductions and improved overall data center economics for operators.
Strategic Investment and Future Plans
The $15 million funding round, with participation from Yali Deeptech and TDK Ventures, will primarily support product development and global expansion. This capital infusion builds upon a previous seed round, signaling strong investor confidence in C2i's platform-based approach to power management. The company is now poised to scale its operations to meet the demands of a rapidly growing market.
Founded in 2024 by a team of seasoned executives from companies like Texas Instruments, C2i is expanding its 65-person engineering team with new operations in the US and Taiwan. The startup plans to validate its first silicon designs with hyperscalers and data center operators between April and June 2026. This timeline positions the company for early deployments in a critical technology window for the AI industry.
Navigating a Competitive Landscape
C2i enters a competitive landscape where industry giants like Infineon, Monolithic Power Systems, and Delta are also innovating power solutions. The sector is rapidly shifting from traditional 12-volt systems to higher-voltage architectures, such as 48-volt and 800-volt DC systems, to support power-hungry AI racks. C2i's configurable platform aims to provide a distinct advantage in this evolving technological race.
The startup's mission aligns with a growing consensus that electricity supply and grid infrastructure are becoming primary constraints on AI's growth, potentially rivaling chip availability. This challenge has elevated power management from a budgetary concern to a strategic issue impacting economic competitiveness and even national security. C2i's work is therefore central to enabling the next wave of AI infrastructure development globally.
This Series A funding round positions C2i Semiconductors to make a significant impact on the sustainability and scalability of AI infrastructure. By fundamentally rethinking power delivery, the company is not just creating a more efficient component but is also addressing a core bottleneck for the entire industry. The success of C2i's technology could unlock substantial savings and accelerate the global buildout of next-generation data centers.