NeoLogic, a new Israel-based fabless semiconductor startup, has a different mission — to totally change how AI data centers are run. The company was launched in 2021 by seasoned industry entrepreneurs Messica and Leshem. They are inspired to create energy-efficient server CPUs that increase performance through increased use of optimized simple logic, while minimizing power usage. The startup is still in stealth mode, but they recently raised a $10 million Series A funding round. KOMPAS VC led the round, with participation from M Ventures, Maniv Mobility, and lool Ventures.
Messica and Leshem, with a combined 50 years of experience in the semiconductor industry, collectively bring decades of knowledge and leadership to NeoLogic. Messica co-founded the company in part because he felt that “Moore’s Law was dead.” This conviction further underscored the dire need for bold, new approaches in chip design. Leshem spent years honing his craft as a chip designer. He previously held executive roles at other well-known firms such as Intel and Synopsis.
NeoLogic’s upcoming server CPU will utilize fewer transistors and logic gates, allowing it to operate more quickly while consuming less energy. The implications of this technology could be significant for data centers, as Messica explains: “If you talk about next-generation data centers, it affects the construction costs. It affects the amount of capital that you’ll invest because you can shave off roughly 30% of the cost. And it affects the water usage. It’s really great for the hidden effect that it has on our society, and really that was kind of our dream ideologically about five years ago.”
The startup is now working with two unnamed hyperscaler partners to complete the design of their server CPUs. Their goal is to have a full single-core test chip produced in time by the end of this calendar year. We predict by 2027 they’ll bring those new CPUs to the data center. Even as industry colleagues doubted the safety or practicality of their innovations, Messica says he didn’t let that stop him. “Most of the people that we have met say it’s impossible,” he noted, reflecting on the challenges they have faced.
“Some of them told us, at the time, that the innovation is impossible because you cannot innovate in logic synthesis. You can’t innovate in circuit design. It’s too mature.”