Nvidia backs a startup that helps firms use fewer AI chips

Nvidia, the leading maker of AI chips, has helped fund a startup that builds software to help companies get by with fewer of those chips. The startup is Simplismart, based in Bengaluru, India. It raised $14 million and is valued at about $100 million, including the new money.

What Simplismart does

AI models run on expensive chips called GPUs. Running a finished model for real users, known as inference, is hard to do well. Different jobs need different trade-offs between speed, cost and performance. Simplismart's software sits between the AI model and the computing equipment under it. It adjusts the setup automatically, so customers do not have to do that work by hand.

Companies can use it through Simplismart's own platform or inside their existing cloud and on-premises systems. It also offers tools to fine-tune models, scale computing up or down as demand changes, and monitor performance.

The numbers

• The Series B round was $14 million, led by Dallas Venture Capital.
• Simplismart says it cut video-AI firm InVideo's GPU serving costs by 56%.
• Its annualized revenue run rate is up 14-fold in six months, to an eight-figure sum.
• More than half of revenue comes from the U.S., though more customers are in India.

Some caution applies. The run rate is based on recent customer usage, not contracted recurring revenue, and it leaves out revenue passed through to infrastructure providers. The exact figure was not disclosed. The 56% savings figure is the company's own claim.

Why Nvidia would back it

It looks odd for a chip seller to fund software that can reduce chip use. Simplismart's CEO, Amritanshu Jain, argues that efficiency helps Nvidia by making its hardware more attractive and encouraging wider use of AI apps. Nvidia is also working with Simplismart on technical integrations, including its Dynamo inference software, and has helped introduce the startup to potential customers. Accel, Shastra VC and Micromax also joined the round.

Who it affects

Simplismart's customers include AI video companies HeyGen and Higgsfield, enterprise AI startup Ema and InVideo. Indian cloud provider Yotta uses its technology for an AI service in its Shakti Studio platform. For everyday users of AI tools, cheaper running costs could eventually lead to cheaper options. Nothing in this story says any company plans to lower prices.

What happens next

Simplismart plans to expand in the U.S., grow its team of 58 people and keep building its software. The market is crowded. Rivals include Nvidia itself and cloud giants Amazon Web Services, Google Cloud and Microsoft Azure, plus other startups.

The Economic Times had reported talks to raise $40 million to $50 million at a $300 million to $400 million valuation. Jain declined to comment, said the startup was not actively fundraising, and said the Series B is closed and will not be extended.