NeoLogic, a semiconductor startup, has raised $10 million in Series A funding to develop its server processors designed to lower the energy use of AI data centers. The funding round was led by KOMPAS VC, with participation from M Ventures, Maniv Mobility, and lool Ventures.
Founded in 2021 by CEO Dr. Avi Messica and CTO Ziv Leshem, NeoLogic has now raised a total of $18 million.
NeoLogic says its special CMOS+ technology can cut data center energy use by up to 30% compared to similar modern processors.
The technology works by simplifying a microprocessor’s core design, using fewer logic gates to make it more power-efficient, while still being compatible with current CMOS manufacturing methods.
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“As AI workloads continue to grow exponentially, the industry urgently needs scalable, power-efficient solutions,” said Avi Messica, co-founder and CEO. “We’re committed to continuing to pioneer higher-performing, sustainable solutions for the AI data center.”
AI-powered computing is putting heavy pressure on data centers worldwide. Inference workloads, in particular, require 5–10 times more high-power servers, which increases costs and carbon emissions.
The AI data center processor market is expected to grow to $151 billion by 2029, creating strong demand for processors that can offer higher performance while using less energy.
NeoLogic is currently showing its first product to potential customers and aims to launch it commercially by 2026. The company also plans to grow its engineering, sales, and marketing teams while building partnerships with major cloud providers.
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