Ethernovia raises $90M as investors rush to fund ‘physical AI’

Ethernovia has raised $90 million in new funding as investors continue to pour money into what is increasingly being described as “physical AI,” a term used to capture the application of artificial intelligence to real-world systems such as robotics and autonomous vehicles.

As advances in AI accelerate, both investors and companies are looking for ways to translate those gains into tangible technologies. That shift is directing some of the billions flowing into AI startups toward lesser-known suppliers that handle the foundational work required to make these systems function in the physical world.

The latest example is Ethernovia, which on Tuesday announced that it has closed a $90 million Series B round. Based in San Jose, the company develops Ethernet-based processors designed to gather data from sensors distributed across complex systems — such as those found in autonomous vehicles — and rapidly transmit that information to a central computing unit.

Ethernovia already counted Porsche SE and Qualcomm Ventures among its existing backers. Maverick Capital led the latest round through Maverick Silicon, an AI-focused investment fund the firm launched in 2024. The fund marked the first time in Maverick Capital’s 30-year history that it had created a sector-specific vehicle.

That level of attention highlights a broader trend expected to continue through the year, as investors increasingly seek out behind-the-scenes companies like Ethernovia that are positioning themselves to support the next wave of AI-driven physical technologies.