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Discovered Materials Uses AI To Hunt For Cooler, More Efficient Chips

AI-powered chips generate significant amounts of heat, adding to the energy and cooling demands of data centres. Startup Discovered Materials is using AI to search for new materials that could help make semiconductor components more efficient.

The company recently raised $9 million in a seed round led by Lightspeed India Partners after graduating from Y Combinator. Peak XV Partners and angel investors including Paul Graham, Gokul Rajaram and Thariq Shihipar also participated.

Using AI To Search For New Materials

Founders Advaith Sridhar and Akash Ramdas have built a software pipeline that combines Anthropic models with physics models developed by the company. AI agents generate potential materials, while simulations assess whether those candidates could have useful properties.

Ramdas, who holds a doctorate in materials science from Stanford, previously spent his PhD research making around 20 material predictions a day. Discovered Materials says its AI agents can now generate thousands of candidates daily by running continuously in the cloud.

The company has also released examples of hundreds of new materials and introduced its Material Discovery Bench, designed to evaluate how advanced AI models approach materials research.

Finding A Material Is Only The First Step

Discovered Materials is focusing specifically on the thermal challenges facing semiconductor materials. The startup says it has already identified several materials with properties similar to those used by major chipmakers, although it has not disclosed further details.

Finding a promising candidate, however, does not guarantee that it can be used in a chip. A material might reduce heat generation but prove difficult to manufacture, or have electrical properties that make it unsuitable.

“A material is only useful in the real world if all of them converge at once,” said Hemant Mohapatra, the Lightspeed partner who led the funding round.

Mohapatra expects AI-based material prediction to become increasingly commoditised as models improve. He sees Discovered Materials’ advantage in Ramdas’ expertise and the company’s ability to test candidates experimentally.

Commercialisation Remains A Challenge

When the company identifies valuable materials, it plans to seek patents covering their use in GPUs or the processes needed to manufacture chips with them, then license the technology to chipmakers. Sridhar hopes the startup will have materials worth patenting within the next year.

AI-driven materials discovery, however, has yet to produce major commercial breakthroughs at scale. While companies have identified promising candidates, including rare-earth-free magnets and new semiconductor materials, widespread commercial deployment remains limited.

For Discovered Materials, that highlights a central challenge: generating candidates may be getting easier, but determining which ones work and producing them remains difficult.

As Sridhar acknowledged, some parts of the process still require physical laboratory work. “This is the process that cannot be sped up,” he said.

Eurobank Plans €1 Billion Investment In AI And Digital Banking By 2028

Eurobank plans to invest about €1 billion in technology from 2025 through 2028, its largest technology investment program to date. The Banking Forward strategy focuses on digital banking, artificial intelligence, customer experience and a “phygital” model combining digital services with face-to-face support.

Digital Banking Dominates Customer Activity

Digital channels already account for 96% of Eurobank transactions, with 61% completed through the Eurobank Mobile App. Among customers aged 35 and under, digital adoption reaches 94%.

Customers make about 574 million annual logins across e/m-banking and more than 1 million digital transactions each day. During the first half of 2026, one in three banking products was acquired digitally.

AI Moves Into Everyday Banking

Eurobank is expanding the use of AI through tools including EVA, its digital customer assistant, and myEVA, an AI-powered voice assistant for employees. The technology is also being applied to mortgage assessments, customer feedback analysis and contractual documents.

The bank’s technology architecture is built around five areas: digital channels, customer experience orchestration, data and AI, core banking, and infrastructure and cloud. About 50% of its applications and digital channels are already cloud-based.

Investment Extends Beyond Technology

The program is intended to reshape how Eurobank operates, combining automation and AI with employee development and human support. The bank says the approach is designed to improve services while maintaining access to face-to-face banking when customers need it.

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