An AI startup in Newcastle has secured £4.6m in investment just two years after being founded.
Newcastle University spinout Literal Labs is an AI algorithm company that uses logic-based techniques to generate custom AI models. It was cofounded by academics Prof Alex Yakovlev and Prof Rishad Shafik, based on their work in machine learning and computer systems design.
The company is led by Noel Hurley, formerly a vice president at semiconductor company Arm. It aims to improve the building of AI models with a technique it says is more efficient than conventional networks.
On its website, the company says that “AI has the potential to change the world for the better” but says the technology should be “explainable, it has to be fast, and it has to be economically and energy efficient.”
The firm is the first Newcastle University spinout to secure investment from Northern Gritstone, a fund that has to date concentrated on university-linked businesses in the North West and Yorkshire. Investment has also come from Mercuri, Sure Valley Ventures, Cambridge Future Tech SPV and several angel investors.
Noel Hurley, CEO of Literal Labs, said: “We’re at a pivotal moment for AI with adoption continuing to accelerate alongside sustainability and cost concerns. Our logic-based AI offers a new solution for those that want and need high-performing AI that is faster, more energy efficient and more explainable than what’s currently available via neural networks. This funding comes at a time when we’re ready to significantly speed up our product development and will enable us to bring our first product to market later this year.”
Duncan Johnson, CEO of Northern Gritstone, said: “Literal Labs is Northern Gritstone’s first investment linked to Newcastle University, renowned for its technology-related research. We are delighted to support Noel Hurley and the Literal Labs team at a time where innovation can truly benefit from greater efficiency in AI.”
Esha Vatsa, partner at investment group Mercuri, said: “We are excited to back Literal Labs as it redefines AI with a radically efficient alternative to existing neural networks. The team, combining deep research expertise and proven industry leadership, is uniquely positioned to commercialise this innovation.”
Literal Labs doubled its headcount from six to 12 in 2024, including the appointment of Leon Fedden, formerly AI Deep Learning platform lead at AstraZeneca, as its chief technology officer.
It will use the investment to grow its engineering team and develop its first commercial product, which it hopes to release later this year.
