Cognichip Launches out of Stealth with $33M in Seed Funding to Deliver Artificial Chip Intelligence – ACI®

Yahoo

15-05-2025

Backed by Lux Capital, Mayfield, FPV, and Candou Ventures, Cognichip aims to modernize chip design by introducing the first-of-its-kind, physics-informed AI foundation model for semiconductors
Cognichip's technology achieves Artificial Chip Intelligence (ACI®), a type of artificial intelligence that understands, learns, and solves chip design problems with designer-level cognitive abilities
ACI® fundamentally reshapes the economics of semiconductors, bringing a 75% reduction in development cost, 50% faster completion, and eliminating excessive chip size and power, making chip design easier, more accessible, and sustainable
SAN FRANCISCO, May 15, 2025--(BUSINESS WIRE)--Cognichip, the company pioneering Artificial Chip Intelligence (ACI®) to power the future of semiconductor design, today announced its launch out of stealth with $33 million in seed funding. Led by Lux Capital and Mayfield, with support from FPV and Candou Ventures, Cognichip is pioneering the first physics-informed foundational model (PIFM) for semiconductors, designed to drastically accelerate development timelines, reduce costs, and enable the next wave of AI innovation.
Not Just Faster, Cheaper, Better: The New Industry Scaling Factor
Founded by experts from Amazon, Google, Apple, Synopsys, Aquantia, and KLA, Cognichip is tackling two major challenges in semiconductor development: high cost and inaccessibility. Chip design today is time-consuming and expensive, often taking 3-5 years and over $100M before reaching production. Traditional approaches, which rely on throwing more money, compute power, and people at the problem, are no longer sustainable. This is especially concerning given the projected shortage of 1 million skilled workers by 2030 – a workforce gap that threatens to constrain the industry's estimated growth in sales to its projected $1 trillion potential [Deloitte]. Cognichip is building ACI® to address these issues, making chip design faster, easier, and more accessible.
"Our vision is to fundamentally reshape the economics of semiconductor design," said Faraj Aalaei, CEO and Founder of Cognichip. "As a founder who has successfully taken two semiconductor companies public, and as a venture capitalist, I have seen firsthand how semiconductor startups are often deemed 'unfundable' due to high costs and long timelines. With the rise of Generative AI, we have a once-in-a-generation opportunity to rethink how chips are designed. I founded Cognichip to disrupt the outdated chip design process and to make semiconductor innovation scalable, secure, and accessible to aspiring future pioneers of our industry. To tackle this massive task, we have assembled a pioneer-minded team stacked with AI scientists with world-class credentials, brilliant chip design veterans, and the best-of-breed enterprise software developers."
Introducing Artificial Chip Intelligence – ACI®
Cognichip's ACI® introduces a breakthrough, physics-informed AI foundation model, purposely built for semiconductor design. ACI® fundamentally rethinks 40 years of traditional, serial chip development with a modern, AI-first, conversational design approach, leveraging large-scale, secure, accelerated compute infrastructures.
From individuals to enterprises, ACI® allows engineering teams to work more efficiently and cost-effectively, elevating artificial intelligence as the new scaling factor for the semiconductor industry.
Key benefits of ACI® include:
50% faster design cycles: Reduces time from concept to production through concurrent local and global optimization
75% reduction in development costs: Dramatically reduces the effort and expertise required to develop and test chips
Improved power, performance, and efficiency: Eliminates unnecessary bloating by bringing products closer to requirements and continuously optimizing for area and power
Enhanced flexibility: Adapts easily to changes in market demands and product variations, minimizing costly redesigns
Simplified scalability: Enables rapid creation of new product variants to meet market demands for flexible portfolio management
Beyond efficiency, ACI® brings much-needed flexibility to the supply chain. Traditionally, switching chip manufacturers or modifying production processes requires extensive redesign efforts. Cognichip's interoperable ACI® solution eliminates this friction, enabling seamless scaling, reducing supply chain risks, and allowing companies to plan for future growth with greater agility.
"The semiconductor industry is at a critical inflection point, with traditional design methods becoming increasingly unsustainable amid escalating costs and a looming talent shortage. What excites us is how Cognichip is fundamentally transforming the economics and speed of semiconductor design through their Artificial Chip Intelligence," said Navin Chaddha, Managing Partner at Mayfield. "We are excited to partner with Faraj Aalaei and the Cognichip team as they democratize access to semiconductor innovation and build something truly revolutionary that will power tomorrow's AI infrastructure."
"Cognichip is introducing a new scaling factor for semiconductors: intelligence. By embedding AI deep into the physics of chip design, they are accelerating innovation in a way that traditional scaling could never achieve, said Shahin Farshchi, Partner at Lux Capital. "We believe Cognichip's approach will reshape the foundation of the semiconductor industry for decades to come."
"Collapsing the traditional barriers of chip design is not only a turning point for the semiconductor industry; it stands to benefit the entire global technology economy," said Pegah Ebrahimi Co-Founder and Managing Partner at FPV Ventures. "Silicon Valley was put on the map because of the semi companies that were born here, and I'm thrilled to back a team of exceptional veterans reshaping yet again the future of semiconductor design by making advanced compute solutions more accessible to any player. Cognichip will accelerate breakthroughs across AI, energy, healthcare, and every industry where progress depends on smarter, cheaper, more efficient hardware."
To learn more about Cognichip or to join their mission, visit www.cognichip.ai.
About Cognichip
Cognichip is developing the world's first Artificial Chip Intelligence (ACI®) to reimagine chip design. Founded by experts from Amazon, Google, Apple, Aquantia, Synopsys, and KLA, the company tackles high cost and inaccessibility in chip development, enabling hardware to evolve as quickly as software innovation.
Backed by $33 million in seed funding from Mayfield, Lux Capital, FPV, and Candou Ventures, Cognichip's ACI® reduces design cycles by 50%, cuts development costs by 75%, and optimizes power, performance, and efficiency. ACI® accelerates innovation and broadens access to semiconductor technology by making it easier, more affordable, and accessible to a broader range of innovators. Learn more at www.cognichip.ai.
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