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C2i Semiconductors, an Intel CEO-backed semiconductor startup based in Bengaluru, has raised $15 million in Series A funding led by Peak XV Partners. The round included participation from Yali Deeptech and TDK Ventures, bringing the company’s total funding to $19 million. The startup develops grid-to-core power management solutions for AI data centers that can recover 8-10% energy efficiency and improve GPU performance by approximately 3%.
C2i Semiconductors Funding Round Details and Investors
Peak XV Partners led the $15 million Series A funding round in C2i Semiconductors on February 16, 2026. Yali Deeptech and TDK Ventures participated as co-investors. The Bengaluru-based startup had previously raised $4 million in November 2024 from deeptech venture fund Yali Capital and Intel industry veteran Lip-Bu Tan, who currently serves as Intel CEO. This early backing from a prominent semiconductor industry leader validated C2i’s technical approach. Series A funding: $15 million (February 2026) Lead investor: Peak XV Partners Co-investors: Yali Deeptech, TDK Ventures Previous funding: $4 million (November 2024) Total funding raised: $19 million
What C2i Semiconductors Does and How It Solves AI Power Crisis
C2i Semiconductors, where C2i stands for control conversion and intelligence, develops system-level power management solutions for AI data centers. The company pioneers grid-to-core architecture that rethinks how electrical power flows from the grid to the processor core. Current data centers waste between 15% to 20% of energy during voltage conversion processes. C2i’s integrated approach treats power conversion, control, and packaging as a unified platform delivering significant improvements: Energy efficiency recovery: 8-10% GPU performance improvement: Approximately 3% Power savings: Nearly 1 kW per server tray Preetam Tadeparthy, co-founder and CTO of C2i Semiconductors, explained the technical challenge. “What used to be 400 volts has already moved to 800 volts, and will likely go higher,” Tadeparthy told TechCrunch.
C2i Semiconductors Product Timeline and Manufacturing Partners
C2i Semiconductors plans aggressive product development with specific manufacturing partnerships announced for its first products. First product tapeout: April 2026 Second product tapeout: July 2026 Manufacturing partner 1: Tower Semiconductor (Israel) Manufacturing partner 2: GlobalFoundries (Singapore or Dallas) The startup is already in discussions with three to four enterprise server customers to define components for next-generation platforms. C2i is targeting global enterprise players as it prepares for commercial deployment.
C2i Semiconductors Founders and Team
C2i Semiconductors was founded in June 2024 by six co-founders with extensive Texas Instruments experience: Ram Anant, Vikram Gakhar, Preetam Tadeparthy (CTO), Dattatreya Suryanarayana, Harsha S. B, and Muthusubramanian N. V. The startup has built a team of approximately 65 engineers at its Bengaluru headquarters. C2i is establishing customer-facing operations in the United States and Taiwan to support global expansion.
Peak XV Partners Investment Thesis
Peak XV Partners, which split from Sequoia Capital in 2023, led the Series A based on the significant economic impact of power efficiency in AI infrastructure. Rajan Anandan, Managing Director at Peak XV Partners, explained the investment rationale. “If you can reduce energy costs by, call it, 10 to 30%, that’s a huge number. You’re talking about tens of billions of dollars,” Anandan told TechCrunch. Anandan compared India’s semiconductor industry to an earlier technology wave. “The way you should look at semiconductors in India is, this is like 2008 e-commerce. It’s just getting started,” he said.
AI Data Center Market Size and Power Demand
The investment comes amid accelerating global demand for AI infrastructure. According to Goldman Sachs Research, data center power demand could surge 175% by 2030 compared to 2023 levels. BloombergNEF projects data center electricity consumption to nearly triple by 2035. AI infrastructure capital expenditure is expected to reach $500-600 billion over the next 12-18 months and could grow to $1 trillion by 2030. Major hyperscalers including Microsoft, Google, and Amazon are scrambling to secure power contracts, with some projects stalled due to grid capacity constraints. The C2i Semiconductors funding adds to a growing wave of AI infrastructure investments in India, as the country’s semiconductor ecosystem matures with government-backed design incentives reducing costs and risks for startups building globally competitive products.
What This Means for AI Infrastructure Industry
The funding signals growing investor focus on physical infrastructure bottlenecks limiting AI deployment. Power delivery has emerged as a critical constraint for scaling AI data centers worldwide. The Intel CEO backing and strategic investment from TDK Ventures add credibility and potential manufacturing partnerships. Success in customer validation over the coming months will determine whether C2i can establish itself as a major player in AI data center power solutions.
