Literal Labs, a logic-based AI algorithm company led by former Arm VP Noel Hurley has raised £4.6m in a pre-seed investment.
The Newcastle-based startup is developing logic-based AI models that aim to be faster and more energy efficient than modern neural networks.
The company was spun out of Newcastle University by AI researchers Dr Alex Yakovlev and Dr Rishad Shafik. Hurley, who spent over 20 years at Cambridge semiconductor company Arm was brought on as chief executive in 2023.
Literal Labs has since doubled its headcount with strategic hires including former AI deep learning platform lead for AstraZeneca Leon Fedden, currently serving as chief technology officer.
The new funding will be used to expand the engineering team with the goal of bringing its first commercial product to market later this year.
“We’re at a pivotal moment for AI with adoption continuing to accelerate alongside sustainability and cost concerns,” said Hurley.
“Our logic-based AI offers a new solution for those that want and need high-performing AI that is faster, more energy efficient and more explainable than what’s currently available.”
The funding round was led by Northern Gritstone, the tech-focused investor that targets companies in the north of England. The investment was co-led by Mercuri with additional support from Sure Valley Ventures, Cambridge Future Tech SPV, and several angel investors.
“Literal Labs is Northern Gritstone’s first investment linked to Newcastle University, renowned for its technology-related research,” said Northern Gritstone chief executive Duncan Johnson.
“We are delighted to support Noel Hurley and the Literal Labs team at a time when innovation can truly benefit from greater efficiency in AI.”
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