Multiverse Computing has successfully raised €189 million (approximately $215 million) to advance its AI model compression technology, CompactifAI, which can reduce the size of large language models (LLMs) by up to 95% while maintaining their performance.

This innovative technology enables LLMs to operate 4x-12x faster and cuts inference costs by 50-80%, making AI applications more affordable and energy-efficient across various platforms, including cloud services and personal devices.

Multiverse currently serves over 100 customers globally, including major clients such as Iberdrola, Bosch, and the Bank of Canada, and holds 160 patents.

CEO Enrique Lizaso Olmos emphasized that CompactifAI challenges the traditional belief that reducing model size compromises performance, asserting that their approach is superior to conventional compression methods.

The technology is based on Tensor Networks, a quantum-inspired method developed by co-founder Román Orús, which optimizes neural networks by eliminating unnecessary correlations.

The new capital will be utilized to expand the workforce by at least 100 employees and acquire GPU resources to enhance model compression capabilities.

The recent funding round, led by Bullhound Capital, has elevated Multiverse's valuation to over $500 million, a significant increase from $108 million following its Series A in March 2024.

This funding round positions Multiverse as the largest AI startup in Spain and among the leading AI startups in Europe, alongside notable companies like Mistral and Owkin.

Investors express confidence in Multiverse's potential to revolutionize AI processing efficiency, highlighting its role in supporting European technological independence in AI.

Multiverse aims to alleviate the high costs associated with deploying LLMs, which have become a barrier to widespread adoption in the growing AI market.

The company's compression tool is also available on the Amazon Web Services AI marketplace, allowing for broader accessibility and integration.

As venture capital funding for quantum startups reached a record $1.9 billion in 2024, Multiverse's innovative solutions are positioned to capitalize on this growing trend.