Ethernovia raises $90M as investors rush to fund ‘Physical AI’

Ethernovia, a San Jose-based company specializing in Ethernet-based processors that facilitate rapid data transfer from distributed sensors to central computers in systems like autonomous vehicles, has raised $90 million in a Series B funding round. This investment reflects growing interest in "Physical AI," a sector focused on applying AI advancements to tangible technologies such as robotics and autonomous vehicles. The funding round was led by Maverick Silicon, an AI-focused fund launched in 2024 by Maverick Capital, marking the hedge fund’s first sector-specific fund in its 30-year history. Existing investors Porsche SE and Qualcomm Ventures also participated. The influx of capital into Ethernovia highlights a broader trend where investors are increasingly channeling funds into companies that provide critical infrastructure and behind-the-scenes technology enabling the practical deployment of AI in physical systems. This shift indicates heightened investor confidence in the potential of Physical AI to transform industries by integrating AI with hardware, signaling that more under-the-radar companies in this space are likely to attract significant funding in the