Velaura AI Raises $110M at $1B+ Valuation

According to the company, Velaura AI has raised $110 million in a Series A funding round at a valuation of more than $1 billion, as investors back its technology designed to reduce power consumption and operating costs in AI data centers.

The funding round was led by Seligman Ventures, with new investor Capricorn Investment Group also participating. Existing investors, including Samsung Catalyst Fund, StepStone Group, and Maverick Silicon, also joined the round.

Velaura AI is developing low-power chip and software technologies for data centers and so-called physical AI applications, including robotics and autonomous systems. The company said the latest funding will be used to accelerate the development and deployment of its AI products, while expanding its engineering and customer service teams.

Earlier this year, Velaura introduced its proprietary Titan Core chip design platform, which is aimed at improving the efficiency of data center workloads while reducing energy consumption.

Velaura AI Co-founder and CEO Rajiv Khemani said that the next era of AI will be shaped not only by more capable models, but also by greater efficiency in computing economics.

Khemani said Velaura is currently in discussions with three of the four largest cloud computing providers about potentially becoming customers, although he declined to identify the companies. Velaura said its technology has already been deployed in more than 30 million chips.

The startup charges customers an upfront fee along with royalties linked to the energy savings generated by its technology. Khemani confirmed that the business model is similar to the chip licensing approach used by Arm before the company began selling its own chips.

Umesh Padval, Managing Partner at Seligman Ventures, which led the funding round, said Velaura is well positioned to benefit from the growing power requirements of AI data centers and the increasing demand for energy-efficient computing in robotics.

As AI workloads continue to expand, reducing the power consumption and operating costs of data center infrastructure is becoming increasingly important. Velaura's focus on low-power chip design and energy-efficient computing could therefore provide a potential advantage as AI adoption expands across data centers and physical AI applications.