D-Matrix Raises $500M to Make AI Run on Less Power

Artificial intelligence is transforming the world, but there's a catch: it's incredibly hungry for power. As billions of people start using AI daily, the energy demands could become unsustainable without major breakthroughs.

That's where D-Matrix comes in. Founded in 2019 by veteran chip engineer Sid Sheth, the company is building a new generation of computer chips designed specifically to run AI systems more efficiently.

Sheth spent decades at Intel and in the semiconductor industry before launching D-Matrix. His track record includes scaling a previous business from zero to roughly $3 billion in revenue, which helped him attract serious investor confidence for this capital-intensive venture.

The stakes are enormous. If AI becomes as common as checking email or searching the web, current infrastructure simply can't keep up. Some experts are even discussing extreme solutions like building data centers in space to access more solar energy.

D-Matrix believes the answer lies in smarter hardware. Their chips aim to make AI fast enough for real-time experiences where users don't wait for responses, while dramatically cutting the energy costs of running these systems at scale.

The company has raised close to $500 million so far. Sheth noted that hardware ventures require substantial funding long before generating meaningful revenue, but the investment reflects confidence in both the technology and the urgent need it addresses.

Why This Inspires

This story represents more than just technological innovation. It shows how engineers are thinking ahead to solve problems before they become crises. As AI becomes woven into daily life, from healthcare to education to creative tools, making it sustainable isn't optional.

Sheth also shared advice for deeptech entrepreneurs, especially in India where he recently spoke. He emphasized thinking globally about capital and not limiting fundraising to one geography. He pointed out that while India excels at AI applications, scaling requires faster data center buildout, more energy availability, and supportive infrastructure.

The broader message is hopeful: the same innovation driving AI forward can also make it sustainable. Every major technology wave has faced resource constraints, and human ingenuity has consistently found solutions.

D-Matrix's chips won't just make AI faster or cheaper. They could help ensure that the AI revolution doesn't come at an unsustainable environmental cost, making the technology accessible to billions without burning through the planet's resources.