SiMa.ai, a leader in Physical AI, has announced a US$150 million Series C financing round that values the company at US$1.45 billion. The oversubscribed round brings the company's total capital raised to US$500 million and was co-led by Fidelity Management & Research Company and Amplify. New investors include AllianceBernstein, Baron Capital, J.P. Morgan, and the State of Michigan, while existing backers such as Alter Venture Partners, Dell Technologies Capital, Maverick Capital, and StepStone Group also participated.
Physical AI Market Expansion
The global market for Physical AI devices, including robotics, automotive systems, and drones, is projected to reach cumulative shipments of 145 million units by 2035 according to Counterpoint Research. This growth signals a shift from software-based artificial intelligence into tangible consumer and industrial hardware, opening one of the most transformative and lucrative market opportunities of the decade. SiMa.ai positions its full-stack Physical AI platform, combining purpose-built silicon and software, as a streamlined alternative to expensive, complex, and power-hungry NVIDIA GPUs.
Founder's Vision for Physical AI
Krishna Rangasayee, Founder and CEO of SiMa.ai, said Physical AI in humanoids, automotive, and drones is the gateway to a US$50 trillion market largely untouched by modern innovation. He noted that while others are still figuring out the pieces or repurposing cloud offerings, SiMa.ai has built the entire puzzle. Rangasayee added that the investment will catapult the company into a dominant position, with resources to scale its platform and secure an undeniable lead in Physical AI.
Deployment of Series C Capital
The new funding will accelerate the scaling of Palette Neat, which SiMa.ai describes as the industry's first agentic software environment for Physical AI. The company will also fund next-generation hardware designed to deliver 1,000 dense TOPS of compute in purpose-built Physical AI silicon. The offerings, slated for the first half of 2028, will include machine learning IP, chiplets, and system-on-chip products targeting medium to high-end drones, humanoid robotics, automotive advanced driver assistance systems, and AI-powered cockpits.
Commercial Traction and Partner Network
SiMa.ai's Series C follows strong commercial validation across Physical AI markets, with year-over-year revenue growth quadrupling between 2024 and 2025. The company continues to track strong upward revenue momentum for 2026 and has expanded its customer and partner network to include Fortune 500 leaders and specialized technology innovators. Among its partners are ARK Electronics, AVerMedia, Bosch, Emerson, Intrinsic, Kontron, L&T Technology Services, Micron, STIGA, Synopsys, TRUMPF SE, and Virya Autonomous Technologies in Bangalore.
Investor Perspectives
Amplify Partners General Partner Mike Dauber said SiMa.ai has consistently out-innovated and out-executed the market by dramatically reducing the complexity of deploying advanced AI models on physical edge devices. Scott Darling, President and Managing Director of Dell Technologies Capital, described SiMa.ai as a critical silicon provider and enabler for distributed Physical AI infrastructure. StepStone Group Partner John Avirett added that scaling Physical AI demands power efficiency and seamless integration into constrained environments, which SiMa.ai's platform is built to deliver.
With US$500 million in total funding and a US$1.45 billion valuation, SiMa.ai is positioned to expand its influence across robotics, automotive, drones, and other Physical AI applications. The Series C round provides both capital and strategic investor support to accelerate product development and commercial deployment. As Physical AI moves into mainstream industrial and consumer hardware, SiMa.ai's purpose-built platform aims to define the next wave of autonomous systems.