Ondine Capital has announced the first close of its third USD-denominated venture capital fund, Ondine Capital Fund III, securing commitments from top-tier institutional and strategic limited partners, including several leading semiconductor enterprises in Taiwan. The fund will invest across the full AI value chain—spanning AI foundation models, next-generation semiconductors, AI infrastructure, AI-native software, and physical AI applications.
The first close matters because it demonstrates continued institutional backing for deep tech ventures at a time when AI and semiconductor innovation are increasingly intertwined. Ondine Capital's existing expertise in semiconductors and deep technology positions it to identify and support companies that operate at the intersection of these fields. The involvement of Taiwanese semiconductor enterprises as limited partners suggests that industry players see strategic value in gaining exposure to emerging AI companies through a specialized fund.
The fund's early portfolio offers a glimpse into its investment thesis. Recursive Superintelligence, founded by former Salesforce Chief Scientist Richard Socher and built by veteran researchers from OpenAI, Google, and Meta, focuses on recursive self-improving AI systems. The startup 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, is a Houston-based physical AI startup specializing in autonomous freight transportation. It recently partnered with Ryan Transportation to launch driverless freight operations along the Houston-Dallas corridor. Salience Labs, founded by Vaysh Kewada and Johannes Feldmann, 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.
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, 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. At Ondine Capital, 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."
The announcement, distributed via Media OutReach Newswire, underscores Ondine Capital's active deployment of capital and evaluation of global investment opportunities. For the broader market, the fund's focus on the full AI stack—from foundation models to physical applications—reflects a maturing view that value creation in AI will require coordinated advances in hardware, software, and real-world deployment. The backing of semiconductor incumbents and the addition of a partner with deep regional networks signal that Ondine Capital aims to bridge Taiwanese hardware expertise with global AI innovation. More information is available at https://www.ondinecap.com/.
