Vertical Semiconductor Raises $11 Million to Redefine Power Delivery for AI Data Centres

Vertical Semiconductor, a pioneering spin-out from the Massachusetts Institute of Technology (MIT), has raised $11 million in seed funding to accelerate development of its vertical GaN (gallium nitride) transistors — a breakthrough set to redefine how power is delivered to AI chips in data centres.

The company’s technology brings power conversion closer to the chip, easing data-centre bottlenecks and boosting efficiency by up to 30 per cent. The approach also promises to cut the power-supply footprint in AI racks by half, enabling more compact, energy-efficient infrastructure.

“The pace of AI is not only limited by algorithms,” said Cynthia Liao, Chief Executive Officer and Co-founder of Vertical Semiconductor. “The most significant bottleneck in AI hardware is how fast we can deliver power to the silicon. We’re not just improving efficiency — we’re enabling the next wave of innovation by rewriting how electricity is delivered in data centres at scale.”

Built on a decade of research from MIT’s Palacios Group, one of the world’s leading GaN research labs, Vertical’s transistors are manufactured on 8-inch wafers using standard silicon CMOS processes. This enables seamless integration with existing semiconductor infrastructure and positions the technology for deployment across devices operating from 100 volts to 1.2 kilovolts.

“The Vertical team has cracked a challenge that has stymied the industry for years — delivering high-voltage, high-efficiency power electronics in a scalable, manufacturable form,” said Matt Hershenson, Venture Partner at Playground Global, which led the funding round. “They’re not only advancing the science; they’re changing the economics of compute.”

The funding round also saw participation from JIMCO Technology Ventures, Milemark Capital, and Shin-Etsu Chemical.

Pictured: Vertical Semiconductor co-founders Josh Perozek, Cynthia Liao, and Tomás Palacios