Chip startup NeoLogic has raised $10 million in a Series A funding round that was led by Kompas VC and saw participation from M Ventures, Maniv Mobility, and lool Ventures.

It brings the total raised by the Israeli startup to $18m, since it was founded by CEO Dr. Avi Messica and CTO Ziv Leshem in 2021.

NeoLogic will use the funding to continue developing its energy-efficient server CPUs based on the company’s proprietary CMOS+ (Complementary Metal-Oxide-Semiconductor) technology, which it says has been designed to reduce data center energy consumption by up to 30 percent, compared to equivalent leading-edge CPUs.

According to NeoLogic, by simplifying the underlying logic of the chip, the number of logic gates is reduced, creating a more power-efficient offering that is still compatible with existing CMOS manufacturing processes.

In an interview with TechCrunch, NeoLogic said it was working with two hyperscalers on the design of the server CPUs, although it declined to name its partners. The company plans to have a single-core test chip developed by the end of 2025, with the aim of getting its CPUs into data centers by 2027.

“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 percent of the cost,” CEO Messica said during the interview. “And it affects the water usage. It has an impact on society, and basically that was our vision roughly five years ago.”