Major U.S. and European auto manufacturers are feeling the pressure from Chinese competitors in the electric vehicle (EV) market. To stay competitive, these manufacturers are striving to lower the cost of producing EVs and reach price points and profit margins comparable to internal combustion engine (ICE) cars. However, achieving this goal requires a faster and more efficient design process. Thankfully, a company called Neural Concept, spun out from the Swiss Federal Institute of Technology in Lausanne (EPFL), has secured $27 million in a Series B funding round to address this pain point using artificial intelligence (AI).
Neural Concept offers a platform that allows designers to model how components will perform before they are manufactured. It is not enough to have the design of a component; one must understand how it will behave as part of an engine or other system. This is where Neural Concept’s AI-powered platform comes into play. The application of this technology extends to various industries, including automotive, micro-electronics, aerospace, and energy.
The company leverages deep learning in a 3D environment and combines data analysis with machine learning to significantly speed up development times and product simulation. In fact, Neural Concept claims that their platform can reduce development times by up to 75% and accelerate product simulation by as much as 10 times.
Pierre Baqué, co-founder and CEO at Neural Concept, explains that the software suggests improvements to enhance the performance of a component based on its understanding of material properties. Previously, the design process involved a CAD designer creating 3D designs, which were then sent for complex numerical simulations or physical testing. This manual process could take a long time to complete. However, with Neural Concept’s platform, the designer can receive guidance directly, saving time and resources.
Baqué envisions that his platform could potentially reduce the development time of an EV from four years to just 18 months, highlighting the significant impact it can have on the industry. The success of Neural Concept’s product is evident from its adoption by industry giants such as Airbus, Bosch, General Electric, Mubea, Subaru, and four Formula 1 racing teams. Additionally, the company is collaborating with NVIDIA to optimize the performance of its GPUs and CUDA software.
While Neural Concept competes against larger “component simulation” companies like ANSYS, which are also exploring deep learning applications, the startup has managed to secure significant funding. The Series B funding round was led by Forestay Capital, with participation from existing investors Alven, Constantia New Business, HTGF, and Aster Group. This funding will be used to expand the company’s presence in Europe, APAC, and the U.S., as well as recruit new talent.
Deborah Pittet, senior principal at Forestay Capital, acknowledges Neural Concept’s pioneering work in 3D Deep Learning and its impressive traction and results with customers across various industries worldwide. With Neural Concept’s AI-powered platform, auto manufacturers and other industries can accelerate their design processes and unlock the potential of electric vehicles more quickly and efficiently.