SiMa.ai Raised $150 Million Series C at a $1.45 Billion Valuation:

HedgeCo.Net — SiMa.ai, the San Jose, California-based developer of chips and software for physical AI, said on October 5, 2026 that it raised $150 million in an oversubscribed Series C round that values the company at $1.45 billion post-money. The financing lifts total capital raised to about $500 million.
Fidelity Management & Research Company and Amplify co-led the round, with participation from Alter Venture Partners, Dell Technologies Capital, Maverick Capital, +ND Capital, Point72 and StepStone Group. AllianceBernstein, Baron Capital, J.P. Morgan and the State of Michigan joined as new investors, according to the company’s release.
SiMa.ai said the proceeds will scale Palette Neat, which it describes as an agentic software environment for physical AI, and fund next-generation hardware including machine-learning IP, chiplets and systems-on-chip. The company is targeting dedicated physical AI silicon delivering 1,000 dense TOPS of compute in the first half of 2028. Founder and CEO Krishna Rangasayee pointed to humanoids, automotive and drones as the core end markets.
The investor list is notable for its crossover character. Mutual fund complexes such as Fidelity, AllianceBernstein and Baron sit alongside hedge funds Maverick and Point72 and a state pension fund, a mix that typically signals a company positioning for an eventual public listing. Edge AI silicon has become one of the more crowded corners of semiconductor venture, and crossover participation at this stage often doubles as price discovery ahead of a larger round or IPO.
For private-market allocators, the round is another data point in the steady repricing of physical AI. Key diligence questions include design-win conversion with automotive and robotics customers, the capital intensity of a 2028 silicon roadmap, and whether software attach through Palette can support margins that a pure chip business might struggle to sustain.