Neologic Develops Energy-Efficient CPUs for AI Data Centers
NeoLogic's Challenge to Conventional CPU Design
When NeoLogic embarked on developing more energy-efficient CPUs specifically for AI servers, the company’s founders, Avi Messica and Ziv Leshem, encountered significant skepticism within the industry.
Messica conveyed to TechCrunch that the prevailing sentiment was one of impossibility. Many experts believed that further innovation in logic synthesis and circuit design was unattainable due to the maturity of these fields.
A New Approach to Chip Architecture
Despite the doubts, Israel-based NeoLogic proceeded to challenge these assumptions. The fabless semiconductor startup is focused on creating a server CPU that utilizes a more streamlined logic structure.
This design incorporates fewer transistors and logic gates, aiming to achieve faster processing speeds while simultaneously reducing power consumption.
Founders' Extensive Experience
NeoLogic was established in 2021 by Messica, serving as CEO, and Leshem, the CTO. Together, they bring a combined 50 years of experience to the semiconductor sector.
Leshem’s background includes extensive work in chip design at prominent companies such as Intel and Synopsis. Messica, conversely, specialized in circuit design and manufacturing processes.
The End of Moore's Law
“We initiated this company over four years ago recognizing that Moore’s Law had reached its limitations,” Messica explained, referencing the observation from the 1960s regarding the doubling of transistors on microchips every two years.
Approximately a decade ago, the practice of continually reducing transistor size began to plateau, as further miniaturization offered diminishing returns.
Partnerships and Future Plans
However, NeoLogic remains optimistic and is collaborating with two undisclosed hyperscaler partners on the CPU design.
The company anticipates having a single-core test chip available by the end of the current year, with a goal of deploying its server CPUs in data centers by 2027.
Recent Funding and Expansion
NeoLogic recently secured $10 million in Series A funding, led by KOMPAS VC, with contributions from M Ventures, Maniv Mobility, and lool Ventures.
These funds will be allocated to expanding the engineering team and accelerating the development of their CPUs.
Addressing Data Center Energy Demands
This funding arrives at a critical time, as data centers are facing increasing strain on existing energy resources. The surge in AI applications is projected to double data center power usage within the next four years.
Potential for Significant Energy Savings
Messica believes that NeoLogic’s potential for energy conservation will make its server CPUs a compelling option for the market.
“The potential energy savings are far-reaching,” Messica stated. “For next-generation data centers, this impacts construction costs, capital investment – potentially reducing it by around 30% – and water usage. It has a broad societal impact, and that was our vision approximately five years ago.”
