Cognichip raised $60 million in new funding to develop AI tools that help design the next generation of AI chips, aiming to slash costs and speed up development. The company, founded in 2024, now has $93 million total. CEO Faraj Aalaei states AI can cut chip development costs by over 75% and halve timelines, tackling the industry's decades-old problem of slow, expensive design. Current AI chip leaders like Nvidia's Blackwell (104 billion transistors) show the scale of the challenge.

Cognichip's approach uses specialized AI models trained on proprietary chip design data, not generic LLMs, addressing the scarcity of shared semiconductor IP. The firm competes with established players like Synopsys and Cadence, and startups like ChipAgentsAI ($74M) and Ricursive ($300M). Seligman Ventures led the round, with Intel's CEO Lip-Bu Tan investing via Walden Catalyst Ventures and joining Cognichip's board.