SiMa.ai Becomes a Unicorn After Raising $150 Mn to Scale Physical AI

Physical AI company SiMa.ai has raised $150 million in Series C funding to scale its AI platform across robotics, automotive and drones. The funding brings SiMa.ai’s total capital raised to $500 million and its valuation to $1.45 billion, making it a unicorn.

The funding round was co-led by Fidelity Management & Research Company and Amplify. Alter Venture Partners, Dell Technologies Capital and StepStone Group also participated, with AllianceBernstein, Baron Capital and JP Morgan joining as new investors. 

SiMa.ai will use the funds to scale its software platform and develop new Physical AI hardware. The company also plans to scale Palette Neat, its agentic software environment for Physical AI. It will also fund its next generation of purpose-built silicon. 

“Physical AI in humanoids, automotive, and drones is the gateway to a $50 trillion market,” Founder and CEO Krishna Rangasayee said. The company expects the new hardware to deliver up to 1,000 TOPS of compute. The company has scheduled these products for the first half of 2028.

The planned hardware will include machine learning IP, chiplets and systems-on-chip. SiMa.ai will target medium and high-end drones, humanoid robotics and automotive applications. It will also target advanced driver assistance systems and AI-powered cockpits. 

Existing customers will be able to migrate their applications to the new architectures.

SiMa.ai said its commercial growth also supported the latest funding round. The company quadrupled year-over-year revenue growth between 2024 and 2025. It also said revenue momentum remains strong in 2026.

SiMa.ai currently serves more than 150 customers across automotive, drones and robotics. Its customers include Bosch, Emerson, Intrinsic, Kontron, L&T Technology Services, Mistral, STIGA, Synopsys, and Virya Autonomous Technologies.

Rangasayee said the company has built a full-stack platform instead of adapting cloud offerings. Counterpoint Research projects cumulative shipments of 145 million Physical AI devices by 2035. SiMa.ai said this shift will move AI from software applications into physical consumer and industrial systems.

SiMa.ai was founded in 2018 to develop software-centric silicon for physical-world applications. Its platform combines the Modalix MLSoC with Palette Neat for Physical AI development. 

The company says this approach can reduce application development timelines from months to days or hours. Its board includes semiconductor and technology executives such as former Xilinx CEO Moshe Gavrielov and Intel CEO Lip-Bu Tan.