Lyte Raises $165M Series C at $1.6B Valuation to Power the Next Generation of Robots

Lyte, a Sunnyvale, California-based physical AI startup developing sensing and perception technology for robots, has raised $165 million in Series C funding at a post-money valuation of $1.6 billion.

The latest financing brings Lyte's total funding raised to $272 million and reflects growing investor interest in technologies that enable robots to understand and interact with complex physical environments.

Lyte Raises $165M Series C

The Series C round was led by Maverick Silicon, with participation from Fidelity Management and Research Company, Atreides Management, Key1 Capital, Ora Global and other existing and new investors.

Fidelity had previously led Lyte's Series B financing.

As part of the latest funding round, Andrew Homan, managing partner at Maverick Silicon, joined Lyte's board of directors.

The company plans to use the funding to further develop its sensing and perception platform as it expands its presence in robotics and industrial automation.

Founded by Former Apple Engineers

Lyte was founded in 2021 by Alexander Shpunt, Arman Hajati and Yuval Gerson, three former Apple engineers who worked on advanced sensing and perception technologies.

Alexander Shpunt serves as CEO and co-founder.

Shpunt also previously co-founded PrimeSense, a company known for its 3D-sensing technology that became part of Microsoft's Kinect after Apple acquired PrimeSense in 2013.

The founders' previous work in 3D perception helped contribute to technologies that later became foundational to Apple's Face ID system.

Building the Perception Layer for Physical AI

Lyte is developing technologies designed to help robots understand their surroundings in real time.

Its platform combines custom silicon, 4D sensing, RGB imaging, motion awareness and AI software to give machines a detailed understanding of geometry, movement and their surrounding environment.

The company's goal is to provide robots with the perception capabilities required to safely and accurately operate in physical environments.

This is particularly important as robots move beyond controlled industrial environments and take on increasingly complex tasks.

Focus on Warehousing and Manufacturing

Lyte's initial customers are primarily in warehousing and manufacturing.

These environments require robots to identify objects, understand spatial relationships and respond to moving people and equipment.

By combining multiple sensing technologies with AI software, Lyte aims to create a perception platform that can be integrated across different types of robotic systems.

The company believes its technology can eventually support a broad range of physical AI applications.

Physical AI Funding Accelerates

Lyte's latest funding comes during a major increase in investment into physical AI and robotics.

According to Crunchbase data cited in the report, physical AI startups globally raised $47.4 billion across 521 deals during the first half of 2026.

That represented a significant increase from the $12 billion raised across 470 deals in the second half of 2025.

The sector is attracting capital as advances in AI models, sensors, robotics hardware and computing create new possibilities for machines operating in the physical world.

From Stealth to Billion-Dollar Valuation

Lyte operated in stealth for several years before emerging publicly earlier in 2026.

At the time, the company announced that it had already raised $107 million across its Series A and Series B rounds.

The new $165 million Series C takes its total capital raised to $272 million and values the company at $1.6 billion.

Lyte's rapid funding growth highlights the increasing investor focus on the underlying technologies required to make physical AI commercially viable.

With its combination of sensing hardware, custom silicon and AI software, the company is positioning itself as a potential perception infrastructure provider for the growing robotics industry.