Embedd raises $2.7M to tackle physical AI infrastructure challenge
Embedd has raised $2.7 million in pre-seed funding led by Seedcamp. It is already working with multiple semiconductor firms, most recently partnering with Microchip Technology.
The round was also backed by Cocoa, Connect Ventures, 2100 Ventures, Vesna Capital, U.ventures, Underline Ventures, Common Magic, and Roosh Ventures.
From cars to medical devices, nearly $19 billion has been invested in robotics and physical AI so far this year. Yet every intelligent machine encounters the same bottleneck before it can operate – the software running underneath it must communicate reliably with dozens of different chips, none of which share a common language.
Embedd automates that layer. Instead of engineers reading thousands of pages of documentation and hand-writing the code, Embedd creates a digital twin of the hardware, giving its AI agents the context to run the integration, and generates the code that makes each chip usable by the software above it.
The London-based deep tech company says it has enabled customers to deliver production-ready software for chips up to six times faster.
Michael Lazarenko, Co-Founder and CEO of Embedd, said: “The next wave of AI will power factories, vehicles, robots and critical infrastructure, but today, every change in hardware creates huge complexity for software teams and that friction is already massively slowing innovation. We built Embedd to address exactly that, and we’re thrilled to have the backing of Seedcamp as we scale.”
Embedd was founded by Ukrainian tech entrepreneurs Michael Lazarenko, Maxim Gorinov and Valentin Gololobov after their previous hardware company was hit by chip shortages during Covid and later disrupted by Russia’s invasion of Ukraine.
Forced to repeatedly rewrite software for newly sourced components, the founders recognised a bottleneck they believed would only worsen as AI moved into the physical world.
Since launching commercially in April 2026, Embedd has signed contracts with multiple semiconductor companies. Among them is Microchip Technology, where Embedd is enabling Zephyr support.
Rodger Richey, Vice President of Development Systems and Academic Programs at Microchip Technology, said: “The competitive question in embedded is no longer whose silicon is fastest, it’s whose silicon is easiest to build on. Our work with Embedd is about meeting developers inside the software ecosystems they’ve already committed to, rather than asking them to come to ours.”
Carlos Eduardo Espinal MBE, General Partner at Seedcamp, said: “AI’s next chapter will play out in the physical world, but today’s software stack was never designed for that reality. Embedd is tackling one of the fundamental challenges facing industries from robotics and manufacturing to healthcare and automotive, and we’re excited to back Michael and the team as they build the infrastructure underpinning the next generation of intelligent machines.”
Embedd will use the funding to continue developing its platform and expand its work with semiconductor companies.
Lazarenko added: “The promise of physical AI is enormous, but today’s hardware fragmentation is slowing innovation. This funding enables us to expand our platform and help more semiconductor companies bring their devices into emerging software ecosystems.”
