NeoLogic Raises $10 Million, Joining Israel’s Frontline in Energy-Efficient AI Chips

14 August, 2025

NeoLogic develops energy-efficient AI inference server processors using its CMOS+ technology, designed to boost performance while reducing data center power consumption by up to 30%

Israeli startup NeoLogic, based in Netanya, has raised $10 million in a Series A round led by Danish venture capital fund KOMPAS VC, with participation from Maniv Mobility, M Ventures and lool Ventures. The funding will accelerate the launch of its first server processor, expand its R&D, sales and marketing teams, and prepare for initial customer deployments in early 2026.

NeoLogic is developing a dedicated server processor for the inference stage of artificial intelligence workloads — the phase in which trained models run predictions in real time. This behind-the-scenes step powers everything from chatbots to image recognition and is one of the most energy-intensive tasks in today’s data centers. Unlike general-purpose CPUs or traditional GPUs, NeoLogic’s chip has been purpose-built from the ground up to deliver a superior performance-per-watt ratio, enabling infrastructure providers to run more AI tasks while cutting power consumption by up to 30%, according to the company.

At the core of the innovation is CMOS+, a proprietary enhancement of the industry-standard CMOS chip manufacturing process. The “plus” refers to a series of architectural and circuit-level optimizations: a streamlined logic structure that reduces the number of active transistors in each operation, higher transistor density for faster processing in a smaller footprint, and AI-specific architectural adjustments — particularly for inference workloads. Crucially, CMOS+ remains fully compatible with conventional CMOS production lines, enabling efficient, large-scale manufacturing without the need for new fabrication infrastructure.

The new processor joins a growing wave of Israeli innovation in the AI inference chip space. In recent years, several local startups have emerged to tackle the global challenge of skyrocketing energy demands from AI applications. Among them is NeuReality, operating from Kfar Saba and Haifa, which designs CPU-free AI inference hardware for data centers, along with management software for large-scale deployments. Another is CogniFiber, which is developing a unique photonic computing technology that embeds optical fibers into chips to run AI workloads at the speed of light with exceptionally low power consumption.

What unites all these players — NeoLogic included — is the drive to give data centers compute solutions purpose-built for the heavy workloads of the AI era, without adding to operational and environmental costs. NeoLogic hopes its CMOS+ technology will prove to be a winning card in a market projected to surpass $150 billion by the end of the decade — a fiercely competitive and fast-moving segment at the heart of the global semiconductor industry.

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