Vertical Semiconductor's transistors support voltage ranges from 100 volts to 1.2kV, offering versatility for various AI applications, and their vertical design allows for high-density, compact power solutions that can be integrated directly beneath AI chips.

CEO Cynthia Liao emphasizes that their technological leap offers significant cost savings and a step-wise improvement in power delivery, aiming to transform power systems in data centers.

The company has raised $11 million in seed funding led by Playground Global, with investments from Jimco Technology Ventures, Milemark-Capital, and Shin-etsu, to support the development of these energy-efficient AI chips.

Despite manufacturing complexities and higher initial costs, the long-term benefits of improved efficiency, scalability, and operational cost reductions position vertical GaN power solutions as a key enabler for next-generation AI infrastructure.

Vertical Semiconductor, an MIT spinoff, is developing vertical GaN transistors that could revolutionize power management in AI and data center systems by enabling more energy-efficient, smaller, and more powerful hardware.

The company plans to begin sampling packaged devices by the end of 2025 and aims to release fully integrated solutions before the end of 2026, advancing scalable production and market entry.

Looking ahead, Vertical Semiconductor intends to start early sampling of prototype devices by the end of this year, with full solutions expected to launch in 2026, targeting applications in hyperscale data centers, edge AI, autonomous vehicles, and scientific computing.

This innovation aligns with industry trends toward advanced packaging, 3D stacking, and heterogeneous integration, supporting scalable AI hardware and contributing to sustainability through reduced energy consumption.

Major industry players like NVIDIA, AMD, Intel, Google, Microsoft, and Amazon are optimistic about the technology, viewing it as a solution to the longstanding power delivery bottleneck in high-performance AI systems, and are actively investing in GaN solutions.

The vertical GaN transistor technology originated from MIT research led by Professor Tomas Palacios and was further developed by Joshua Perozek, focusing on improving form factor and efficiency for AI server power delivery.

Vertical Semiconductor aims to deliver prototypes within this year and fully manufactured chips in the following year, competing with established chipmakers like Renesas, Infineon, and Power Integrations, who are also developing GaN technology for AI data centers.

The company's advancements are seen as a significant shift in the economics and engineering of power systems in data centers, with broad impacts on AI hardware performance and efficiency.

Built on a decade of MIT research, Vertical GaN transistors utilize gallium nitride to create more efficient, power-dense systems compatible with standard manufacturing processes, supporting high-voltage power conversion.