SiMa.ai, which describes itself as a physical AI company, has secured $150 million through a Series C round, pushing its cumulative funding to $500 million and placing its valuation at $1.45 billion. Fidelity Management & Research Company and Amplify jointly headed the funding round, alongside contributions from Alter Venture Partners, Dell Technologies Capital, and StepStone Group. AllianceBernstein, Baron Capital, and J.P. Morgan are among the firms involved. Morgan participated in the funding round as a first-time backer. According to a press release from SiMa.ai, the funding will be directed toward expanding Palette Neat, an agentic software environment for Physical AI, as well as advancing next-generation hardware designed to deliver 1,000 TOPS of compute via purpose-built Physical AI silicon. SiMa.ai, established by Krishna Rangasayee in 2018, delivers a software-driven platform designed for Physical AI use cases. Its operations span robotics, automotive systems, drones, industrial automation, aerospace and defence, smart vision, and healthcare. The company's client base spans over 150 organisations across the automotive, drone, and robotics sectors, with partners including ARK Electronics, AVerMedia, Bosch, Emerson, Intrinsic, Kontron, L&T Technology Services, Mistral, STIGA, Synopsys, and Virya Autonomous Tech, among others. Industry research cited by the firm forecasts cumulative shipments of Physical AI hardware — spanning robotics, automotive systems, and drones — to reach 145 million units worldwide by 2035. According to SiMa.ai, GPU-based solutions have historically been the standard for Physical AI workloads, though they tend to carry high costs and substantial power demands. Its end-to-end Physical AI platform integrates proprietary chips and software to streamline the deployment process. Planned for the first half of 2028, the upcoming hardware generation will feature machine learning intellectual property, chiplets, and systems-on-chip. Its focus will span mid-range to premium drones, humanoid robotics, automotive driver-assistance technology, and AI-driven vehicle cockpit systems.