Physical AI company SiMa.ai has raised $150 million in a Series C funding round as it looks to expand its platform for artificial intelligence applications across robotics, automotive, drones and other physical systems. The latest round values the company at $1.45 billion and takes its total capital raised to $500 million.
The Series C round was co-led by Fidelity Management & Research Company and Amplify. Existing investors Alter Venture Partners, Dell Technologies Capital, Maverick Capital, +ND Capital, Point72 and StepStone Group also participated in the round. AllianceBernstein, Baron Capital, J.P. Morgan and the State of Michigan joined as new investors.
Founded in 2018 by Krishna Rangasayee, SiMa.ai develops a software-centric platform designed for Physical AI applications. The company focuses on areas including robotics, automotive, drones, industrial automation, aerospace and defence, smart vision and healthcare.
SiMa.ai said it currently serves more than 150 customers across automotive, drones and robotics. Its customer base includes ARK Electronics, AVerMedia, Bosch, Emerson, Intrinsic, Kontron, L&T Technology Services, Mistral, STIGA, Synopsys and Virya Autonomous Tech, among others.
The company said the newly raised capital will be used to scale Palette Neat, its agentic software environment for Physical AI, while also supporting the development of next-generation hardware. The upcoming hardware is being designed to deliver 1,000 TOPS of compute through purpose-built Physical AI silicon.
The next-generation hardware is slated for H1 2028 and will include machine learning IP, chiplets and SoCs. SiMa.ai plans to target applications such as medium to high-end drones, humanoid robotics, automotive advanced driver assistance systems (ADAS) and AI-powered cockpits.
“Physical AI in humanoids, automotive, and drones is the gateway to a $50 trillion market that has remained largely untouched by modern innovation,” said Krishna Rangasayee, Founder and CEO at SiMa.ai. “While others are still figuring out the pieces or repurposing their cloud offerings, we’ve built the entire puzzle. This investment will further catapult us into a dominant position, giving us the resources to scale our purpose-built platform and secure an undeniable lead in the Physical AI race.”
SiMa.ai said the global Physical AI devices market, covering robotics, automotive and drones, is projected to reach 145 million cumulative shipments by 2035, according to market research cited by the company.
Physical AI systems have traditionally relied on NVIDIA GPUs, which SiMa.ai said can be expensive and power intensive. The company’s approach combines purpose-built silicon with software in a full-stack platform intended to simplify the deployment of AI applications on physical devices.
The company said its platform can help reduce deployment timelines from months to days or hours. SiMa.ai is also developing its next generation of hardware as AI workloads increasingly move from conventional computing environments into machines that interact with the physical world.
The latest funding follows SiMa.ai’s earlier expansion of its Physical AI platform and adds further capital for software development, hardware engineering and growth across its target markets. With the Series C, the company plans to accelerate Palette Neat and continue developing silicon designed specifically for Physical AI workloads.
The funding round marks another major step in SiMa.ai’s effort to build a full-stack platform combining AI software and purpose-built computing hardware for real-world applications across robotics, drones and automotive systems.
