The round was led by Samsung Ventures, Varana Capital, Cardumen Capital, OurCrowd and XT Hitech. Participating in the round were SK Hynix, Cleveland Avenue, Korean Investment Partners, Glory Ventures, and StoneBridge
Caesarea-based artificial intelligence startup NeuReality, which develops high-performance inference solutions, raised $35 million in round A. The round was led by Samsung Ventures, Varana Capital, Cardumen Capital, OurCrowd and XT Hitech. Participating in the round were SK Hynix, Cleveland Avenue, Korean Investment Partners, Glory Ventures, and StoneBridge.
The capital raising will help New Reality to start deploying its inference solutions in the global market in 2023. The solutions enable optimal deployment in data centers and local sites close to near-edge devices that need high performance, low latency and high efficiency. The company has already announced close collaborations with partner companies and leading customers in the field of AI such as IBM, LENOVO and AMD, both as partners and as customers.
Neurality’s comprehensive solution includes hardware, software and development tools, working together to make the processes of implementing artificial intelligence solutions simpler, easier and faster. The company invented a new type of Network Addressable Processing Units (NAPU) that offer system optimization for implementing inference in neural networks for uses such as computer vision, natural language processing and recommendation engines. The NAPU unit will make it possible to expand the market of companies that use AI also to companies that are less technical in nature. It will also allow large organizations such as huge public cloud farms deployed around the world (Hyperscalers) and new customers of data centers to make the use of artificial intelligence more widespread and convenient and preserve sustainability on the planet.
The capital raising will allow NeoReality to bring NR1, its first NAPU solution, to the market. This state-of-the-art chip, based on the company’s AI-centric architecture, breaks the limits of performance and efficiency of AI systems and brings them to new levels. It does this by removing bottlenecks in a way that increases the utilization of existing deep learning processors, while reducing the waiting time of AI processing, along with an overall reduction in system costs and power consumption. System costs and power consumption are critical components in improving the total cost of ownership (TCO) of data centers and large-scale computing systems at customer sites. They are essential for the success of business models of many applications as well as for the existing requirements (sustainability) set by governments around the world.
“The investment is another expression of confidence in the talent and innovation of NeuReality and the Israeli technology industry in general,” said Moshe Tanach, CEO and co-founder of NeuReality. “The fact that high-profile investors chose to participate in the round is not accidental. This fact is a proof of the potential of the AI-centric architecture and the NR1 processor that they developed to generate value in the market. We are committed to creating a democratization that will bring the wonders of artificial intelligence to many companies and new uses in a mass deployment.”
Yoav Zeba, managing partner of the XT Hi-Tech Fund, stated: “We are very proud to join the journey of NeuReality led by the extraordinary team led by Moshe, Zvika, Yossi and Lior. Neurality’s resource-intensive and cost-effective computing technology is a critical component in the growth of the everyday use of AI. Neurality creates a complete shell that allows the Deep Learning processors to serve voice, language, and other important applications.”
Mingo Li, Managing Partner at Cleveland Avenue, added: “NewReality brings ease of use and scalability to the deployment of AI solutions, and we see a synergy between NewReality’s promising technology and the needs of the Fortune-500 companies with which we are in close contact. Beyond that, we believe that investing in companies like NeuReality is essential, not only to ensure the future of technology, but also to ensure the sustainability of the planet.”
Newreality was founded in 2019 and is led by a management team with extensive experience in data center architecture, systems and software. The company’s founders are Moshe Tanach, who serves as CEO, Tzvika Shmueli, vice president of operations, and Yossi Kasos, who serves as vice president of chip development. Before establishing Newreality, Moshe Tanach held senior positions as director of engineering at Marvel and Intel and vice president of R&D at Designart Networks (later acquired by Qualcomm). Zvika Shmueli served as Vice President of Backend at Mellanox and as Vice President of Engineering at Habana Labs. Yossi Kasos served as senior director of engineering at Mellanox and as head of chip development at IZchip. The company’s leading team includes CTO Lior Hormosh, former co-founder and chief scientist of ParallelM and fellow at PMC Sierra.
New Reality currently employs about 40 female and male employees in the company’s development centers in Caesarea and Tel Aviv. The company intends to recruit about 20 additional employees in the coming year in order to support the development challenges.