EPIC Microsystems, a San Jose-based developer of hybrid switched-capacitor (HSC) power delivery solutions for AI servers, has raised $21M in an oversubscribed Series A funding round led by Seligman Ventures. The company replaces bulky inductors with compact capacitors to enable higher power density, efficiency, and thermal management in racks scaling toward 1MW. The capital will accelerate development and scaling of silicon-proven HSC designs for hyperscalers and data center operators.
Vertical Power Wave Hits AI
The raise follows Amber Semiconductor's $30M Series C on March 10, 2026, signaling investor rush into vertical power delivery for AI data centers. EPIC's HSC architecture targets multi-vector constraints like current density, z-height, and thermals in dense racks. This timing aligns with average rack densities surging 69% year-over-year to 27kW, per AFCOM data, pushing traditional solutions to their limits.
Rack Power Scales to Limits
AI-driven data center racks now average 27kW, up 69% YoY, with AI-specific racks needing 30-40kW or more according to AFCOM. Power density, efficiency, and thermal management have emerged as primary bottlenecks for hyperscalers deploying NVIDIA GPUs and accelerators. Legacy buck converters struggle with bulkiness and heat in MW-scale racks, delaying expansions amid grid constraints affecting 30-50% of projects.
HSC Replaces Inductors for Density
EPIC's HSC converters use capacitors instead of inductors, enabling vertical power delivery optimized for AI accelerators. This design achieves higher power density and easier cooling compared to modular approaches from incumbents like Vicor or GaN-based ICs from Navitas. Silicon-proven prototypes address transients and scalability holistically, positioning EPIC for 100kW+ racks.
As Umesh Padval, Managing Partner at Seligman Ventures, noted:
"Power density, efficiency and thermal management have become primary bottlenecks…"
Investors Back AI Rack Shift
Seligman Ventures led the round, with participation from Intel Capital, AICONIC Ventures, Cambium Capital, and others, bringing total funding to $26M. Umesh Padval joins the board, adding strategic oversight. Seed investor Lip-Bu Tan, Intel CEO, signals validation from semiconductor heavyweights. This mix underscores conviction in EPIC's role amid PMIC shortages and price hikes from suppliers like Infineon.
Data Center Power Market Expands
The data center power management market stands at $8.76B in 2026, projected to reach $16.04B by 2035 at 6.98% CAGR per Precedence Research. Trends include shifts to 48V/800V distribution and GaN/SiC adoption for over 98% efficiency. AI compute demand drives 2-3x higher power needs, fueling capital into innovators like EPIC.
Team Pioneered Mobile Charging
Co-founder and CEO Sabin Eftimie leads a team with over 10 years scaling switched-capacitor tech to high-volume smartphone fast charging for millions of devices. Their expertise in compact power now tackles AI server challenges. Board addition Umesh Padval brings deep VC and semi experience.
As Sabin Eftimie stated:
"AI data center architectures are breaking historic power boundaries…"