When NeoLogic began developing more energy-efficient CPUs for AI servers, industry experts told founders Avi Messica and Ziv Leshem their idea wasn’t feasible. Many dismissed the concept, claiming innovation in logic synthesis and circuit design was impossible due to the maturity of the field.
Undeterred, the Israel-based fabless semiconductor startup pressed forward. NeoLogic is designing a server CPU that simplifies logic—how a chip processes information—using fewer transistors and logic gates. This approach allows the chip to run faster while consuming less power.
Founded in 2021 by Messica (CEO) and Leshem (CTO), NeoLogic benefits from their combined 50 years of semiconductor experience. Leshem has a background in chip design at companies like Intel and Synopsis, while Messica specializes in circuit design and manufacturing.
Messica explained that the company was born out of the belief that Moore’s Law—the observation that transistor counts double every two years—had reached its limits. A decade ago, companies stopped shrinking transistors because further miniaturization became impractical.
NeoLogic, however, saw untapped potential. The startup is collaborating with two undisclosed hyperscalers on its server CPU design. A single-core test chip is expected by year-end, with plans to deploy the CPUs in data centers by 2027.
Recently, NeoLogic secured a $10 million Series A funding round led by KOMPAS VC, with participation from M Ventures, Maniv Mobility, and lool Ventures. The investment will support engineering team expansion and continued CPU development.
This funding comes at a critical time, as data centers face escalating energy demands. The AI boom is projected to double data center power consumption within four years. Messica believes NeoLogic’s energy-efficient CPUs will be irresistible to the market.
The potential savings extend beyond power consumption. Messica highlighted how reduced energy use lowers construction costs, capital investments, and water usage—ultimately benefiting society. This vision, he said, has driven NeoLogic’s mission from the start.