Takeaways by Saasverse AI
- Vertical Semiconductor | Seed Round | $11 Million | Advanced GaN Power Solutions for AI Chips.
- Led by Playground Global, with participation from JIMCO Technology Ventures, milemark•capital, and Shin-Etsu Chemical.
- Developing vertical GaN transistor technology, promising to improve data center power efficiency by 30% and reduce power system footprint by 50%.
Vertical Semiconductor, a groundbreaking MIT spin-off, has raised $11 million in its seed funding round to advance its next-generation vertical gallium nitride (GaN) transistor technology. Led by Playground Global, the round also saw investments from JIMCO Technology Ventures, milemark•capital, and Shin-Etsu Chemical. Vertical is poised to redefine the power delivery landscape for AI chips in data centers, focusing on efficiency and scalability in response to the growing demands of AI workloads.
Unlike traditional lateral GaN transistors, Vertical’s innovative vertical GaN design enables higher transistor density, improved thermal performance, and support for greater voltage ranges. By integrating power delivery closer to the chip, Vertical’s solution minimizes power loss and heat generation, a critical advancement for AI-driven data centers. The company claims its technology can enhance power efficiency by 30% while halving the physical footprint of power systems at the data center rack level. This efficiency gain promises to unlock new levels of performance for AI workloads, which are increasingly constrained by power and thermal limitations.
Vertical’s technology is built on a decade of research at MIT’s Palacios Laboratory and has already been validated on 8-inch wafers using standard silicon CMOS semiconductor manufacturing processes. This compatibility with existing manufacturing infrastructure ensures a seamless path to scale, with applications spanning devices operating from 100V to 1.2kV. The company plans to conduct early testing of prototype devices by the end of this year and aims to launch fully integrated solutions by 2026.
“ Vertical Semiconductor is addressing one of the most pressing bottlenecks in the AI data center ecosystem—power efficiency and thermal management,” a Saasverse analyst remarked. “The vertical GaN technology not only offers significant efficiency gains, but its compatibility with existing CMOS processes positions it as a highly scalable solution. With AI compute demand skyrocketing, innovations like this could become foundational for next-generation data center architectures. ” Saasverse Analyst comments
Saasverse Insights
Vertical Semiconductor’s breakthrough underscores the growing importance of power delivery innovations in sustaining the rapid evolution of AI hardware. As AI models become larger and more resource-intensive, the industry is grappling with the twin challenges of power efficiency and thermal constraints. Vertical’s solution arrives at a pivotal moment, offering a pathway to higher performance without proportional increases in power consumption or data center real estate.
Additionally, the company’s integration of vertical GaN technology into standard silicon manufacturing processes highlights an emerging trend: the convergence of advanced materials with established CMOS infrastructure. This approach not only accelerates time-to-market but also reduces adoption barriers for hyperscalers and chipmakers.
By targeting the AI data center market—a sector projected to exceed $143 billion in 2029—Vertical’s innovation has the potential to reshape power delivery standards across the industry. Expect this milestone to fuel further investment in power-related semiconductor technologies, creating new opportunities for startups and incumbents alike in the AI, SaaS, and Cloud ecosystems.