Huge funding: Executives from OpenAI and Anthropic invest in an Israeli startup that trains robots
Israeli startup Enigma has raised $71 million in a seed round. The company is developing foundation models for 'Physical AI,' creating a unified software layer to control robots.
Photo: Natasha Zeriker
We are accustomed to artificial intelligence writing code, drafting emails, and generating images in seconds. However, in the realm of 'Physical AI,' the situation is different. Although the robotics industry generates billions of dollars, most robots still require specific adjustments, endless hours of manual data collection, and custom code for each piece of hardware. This is where the new Israeli startup Enigma enters the picture, having revealed today (Monday) an unusually large seed round of $71 million.
The brain of the robots
Enigma does not deal with hardware; it does not develop robotic arms or mechanical dogs, but focuses on the 'brain.' It builds foundation models for the physical AI field with the goal of creating a unified software layer independent of specific robot hardware. Instead of training each robot separately for a specific task, their technology allows the system to understand the environment and adapt to changes in real-time, dramatically reducing the need for manual data collection. The goal is to make the interface between humans and machines completely intuitive.
The market Enigma is entering is far from niche. The global robotics market is valued at approximately $50 billion, and according to a McKinsey report, it could grow to trillions of dollars in the coming decades. In recent years, the industry has focused on improving physical capabilities while neglecting user experience, which is exactly what Enigma aims to change.
To allow people to experience the technology, the company is launching a large experiment today, enabling anyone in the world to interact online with over 100 of their AI robots stored in hangars in Israel and California. According to the company, the robots can perform tasks such as painting with a brush, sword fighting, and conducting chemical experiments by mixing vials. CEO Yonatan Yaacobi explains that the next leap in the industry is the transition from screens to systems that operate in the real world, noting that technical advancement matters little if the interaction does not feel natural.
The youngest employee at Microsoft
Behind the company are Yonatan Yaacobi and Gal Niv, alumni of Unit 8200 who met at hackathons and robotics competitions. Yaacobi began a degree in computer science and mathematics at age 13. Shortly after, he was recruited by Assaf Rappaport, then head of Microsoft's R&D center in Israel, making him Microsoft's youngest employee. Niv, the CTO, managed cyber operations in 8200 at a young age. Today, they employ 25 people in Tel Aviv, many of whom are researchers and science olympiad winners.
Although the company has existed for only 10 months, the investor list is a 'dream list.' The round was led by Index Ventures and Ribbit Capital, with participation from executives at Anthropic and OpenAI, as well as Assaf Rappaport and Merav Bahat (Dazz and Wiz), who invested both privately and through their new fund, Stardust. The American fund Conviction Partners also invested in Enigma—its first investment in Israel.
