Building on the firm’s deep-rooted expertise in semiconductors and deep technology, Ondine Capital Fund III will invest across the full AI value chain, spanning AI foundation models, next-generation semiconductors, AI infrastructure, AI-native software, and physical AI applications.

Ondine Capital Fund III’s early portfolio highlights include:

• Recursive Superintelligence: Founded by former Salesforce Chief Scientist Richard Socher and built by veteran researchers from OpenAI, Google, and Meta, the startup focuses on recursive self-imving AI systems. It recently raised $650 million at a $4 billion pre-money valuation led by Google Ventures, with participation from Nvidia and AMD.

• Bot Auto: Founded by Xiaodi Hou (former co-founder and CTO of TuSimple), this Houston-based physical AI startup specializes in autonomous freight transportation. Bot Auto recently partnered with Ryan Transportation to launch driverless freight operations along the Houston-Dallas corridor.

• Salience Labs: Founded by Vaysh Kewada and Johannes Feldmann, the company develops silicon-photonics optical switching technology for AI data centers. Partnering with Tower Semiconductor, Salience Labs recently closed a $125 million financing round led by Bullhound Capital, with strategic backing from AMD Ventures and Intel Capital.

Partner Appointment to Boost Global Ecosystem

Coinciding with the first close, Ondine Capital announced the appointment of Brian Yen as Partner, reinforcing the firm’s global sourcing and founder network.

Prior to joining Ondine Capital, Brian Yen served as Principal and Head of the Taipei Office at Headline Asia, where he cultivated an extensive network across Japan, Taiwan, and Southeast Asia. His investment track record spans consumer technologies, agentic services, and physical AI, with notable investments including respond.io, forest inc., Braid, and iMotorbike. At Ondine Capital, Brian Yen will focus on backing early-stage founders building intelligent software and physical AI platforms.

“The convergence of AI and semiconductors is unleashing unprecedented opportunities across global tech,” said Brian Yen. “As these technologies mature, we anticipate monumental value creation throughout the entire stack. Through Fund III, we look forward to empowering visionary founders who are shaping the future of computing and industry applications.”

Ondine Capital continues to actively deploy capital and evaluate global investment opportunities in breakthrough, category-defining companies across the AI and semiconductor landscape.