Cognichip has announced a $33m seed funding round to advance its Artificial Chip Intelligence (ACI) technology.

The funding round was led by Lux Capital and Mayfield, with additional support from FPV and Candou Ventures.

This financial backing will be instrumental in developing Cognichip’s first physics-informed foundational model (PIFM) for semiconductors, which aims to streamline development timelines, cut costs, and spur new AI innovations.

Cognichip is addressing two critical issues in semiconductor development: the prohibitive cost and the lack of accessibility.

According to Cognichip, developing chips through traditional methods can take up from three to five years and exceed $100m in expenses. The company’s solution targets a fundamental shift from these legacy methods.

At the centre of its technology is a PIFM)for semiconductors.

This approach seeks to modernise chip development by adopting an AI-first methodology that supports conversational design and leverages large-scale, secure compute systems.

Cognichip CEO and founder Faraj Aalaei said: “Our vision is to fundamentally reshape the economics of semiconductor design.

“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 I founded Cognichip to disrupt the outdated chip design process and to make semiconductor innovation scalable, secure, and accessible to aspiring future pioneers of our industry.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.”

Cognichip said it ACI model significantly enhances engineering workflows by making them faster and more cost-effective.

Among the benefits include reducing design cycles by 50%, cutting development costs by 75%, and improving overall power and efficiency of semiconductor products, stated the company.

The model also offers better adaptability to changing market demands and simplifies scaling efforts, the company added.

The technology is also aimed at increasing flexibility within the semiconductor supply chain.

Cognichip’s interoperable ACI solution is claimed to allow companies to scale effortlessly, reduce supply chain risks, and plan for future growth with increased agility.

Lux Capital partner Shahin Farshchi said: “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.

“We believe Cognichip’s approach will reshape the foundation of the semiconductor industry for decades to come.”