NovoLINC Raises New Capital to Break the Thermal Barrier Limiting Next-Gen AI Chips

PITTSBURGH, Dec. 18, 2025 /PRNewswire/ -- NovoLINC, a leader in advanced thermal interface material (TIM) solutions for high-performance computing, today announced the closing of an oversubscribed funding round to accelerate the commercialization of its breakthrough technology. The round was co-led by Fathom Fund and TDK Ventures, with strong participation from current investors Foothill Ventures, M Ventures, and Carnegie Mellon University, and welcomed Hitachi Ventures as a new investor.

NovoLINC's disruptive technology directly addresses the mounting thermal management crisis driven by the explosive power density growth of advanced AI and networking chips. As the industry rapidly transitions from air to liquid cooling to support multi-kilowatt GPUs, CPUs, and ASIC accelerators, NovoLINC's proprietary nanostructured TIMs are emerging as an essential enabler for managing heat at power densities exceeding 100 W/cm², the next heat-flux regime on semiconductor thermal roadmaps that conventional TIMs cannot reliably support.

NovoLINC's TIM achieves an industry-record thermal resistance of 0.7 mm²•K/W, enabling more than 10X lower interface resistance than conventional materials. The unique design architecture not only effectively dissipates localized hot spots but also forms an adaptive interface to accommodate dynamic warpages during chip operation, directly addressing one of most critical reliability challenges in next-generation semiconductor packaging.

This unprecedented performance, combined with a proprietary continuous manufacturing process, positions NovoLINC as a scalable and cost-effective solution for global deployment across the computing ecosystem. This leap in thermal performance is estimated to deliver over 30% improvement in chip-to-coolant thermal efficiency for direct liquid cooling. At global scale, the impact is profound: by 2030, NovoLINC-enabled systems could eliminate more than 30 TWh of annual energy consumption, representing multi-billion-dollar reductions in data-center operating costs.

NovoLINC has demonstrated substantial commercial traction with major ecosystem players, including hyperscalers, advanced AI and networking chip companies, AI server OEM/ODMs, and cold plate manufacturers. The company has received recognitions in leading industry programs, including the Open Compute Project (OCP) Startup Member Program, the NVIDIA Inception Program, and a Pittsburgh Technology Council Top 50 Honoree.

The new capital will support manufacturing scale-up, expanded R&D, and strategic business development to meet accelerating customer demand.

Executive and Investor Commentary

Dr. Ning Li, Co-founder and CEO of NovoLINC, stated, "Our team is collaborating closely with industrial partners to accelerate the manufacturing scaleup and the commercialization of our technology to meet the surging needs of high-power computing and sustainable AI data center operations. This investment validates our critical role in enabling the next generation of AI and high-performance computing."

Paul Sheng, Managing Partner at Fathom Fund, commented "As power density rises with each generation of GPUs, thermal dissipation will become a critical roadblock in AI infrastructure. The novel material system developed by NovoLINC not only allows superior Z-direction thermal dissipation compared to current state-of-the-art but also does this with continuous production scalability and cost efficiency through industry-tested electrochemistry. It's the critical building block in liquid cooling."

Tina Tosukhowong, Investment Director at TDK Ventures, commented, "As 40% of a data center's energy consumption goes toward cooling, NovoLINC is tackling one of the most pressing technical challenges in the industry. By offering the lowest thermal resistance and the necessary performance and scalability, their thermal interface technology is the essential solution to make chip cooling more efficient and support the industry-wide shift to liquid cooling for next-generation computing chips."

Wolfgang Seibold, Partner and CIO at Hitachi Ventures, commented "We believe the next wave of value in AI infrastructure will accrue to enabling technologies that sit beneath every system architecture. NovoLINC operates at that layer by solving thermal transfer at the material level, they unlock performance and efficiency across cooling stacks."

About NovoLINC

NovoLINC is a pioneering startup in advanced thermal interface solutions, headquartered in Pittsburgh, PA. Spun out of Carnegie Mellon University, NovoLINC has developed a unique nanostructured materials system and proprietary manufacturing process to revolutionize thermal management for high-performance computing, data centers, and power electronics.

The company previously secured seed funding led by M Ventures, with participation from Foothill Ventures and TDK Ventures. Its technology development has also been supported by the U.S. National Science Foundation's Partnerships for Innovation program and the ARPA-E COOLERCHIPS initiative. For more information, visit www.novolinc.com.

About Fathom Fund

Fathom Fund is a Houston-based venture capital firm investing in early-stage deep tech startups solving the world's toughest challenges. With a focus on sectors like advanced computing, materials science, aerospace, climate resilience, and energy transition, Fathom Fund partners with bold entrepreneurs at the intersection of science, engineering, and innovation. The firm combines rigorous technical diligence with hands-on support to help transform breakthrough technologies into scalable, industry-defining businesses.

About TDK Ventures

TDK Ventures Inc. invests in startups to bolster innovation in materials science, energy/power and related areas typically underrepresented in venture capital portfolios. Established in 2019 as a wholly-owned subsidiary of TDK Corporation, the corporate venture company's vision is to propel the digital and energy transformations of segments such as robotics and industrial, next-generation transportation, mixed reality and the wider IoT/IIoT markets. TDK Ventures will co-invest and support promising portfolio companies by providing technical expertise and access to global markets where TDK operates.

About Hitachi Ventures

Hitachi Ventures is the corporate venture capital arm of Hitachi, Ltd., with over $1B in assets under management and teams based in Munich, Boston, San Francisco and Bangalore. The firm invests in foundational technologies across AI infrastructure, advanced materials, industrial automation, energy, and healthcare. The firm partners with founders solving complex engineering challenges at the intersection of hardware, software, and physics, and works closely with Hitachi's global R&D and operating businesses to support validation, industrialization, and real-world deployment at scale.

SOURCE NovoLINC, Inc.