AI Automates Hardware Design, Secures $23M Series B

Chinese AI innovator Design Order has successfully closed a Series B funding round, raising over 100 million yuan (approximately $23 million USD). The investment was led by Shenzhen New Industry Investment Private Equity Fund Management and Heding Capital, with participation from existing investor Yonghua Capital. This capital infusion is earmarked for expanding market reach and advancing the core AI models that power the company's groundbreaking industrial design solutions.

While artificial intelligence has rapidly permeated software development and office automation, the complex realm of hardware engineering has remained largely reliant on specialized human expertise. The traditional hardware design lifecycle involves intricate processes from initial conceptualization through structural integrity, thermal management, fluid dynamics, and electromagnetic field analysis, culminating in manufacturability assessments. This typically necessitates the iterative use of multiple software suites like CAD, CAE, and CAM, a process that is both time-consuming and resource-intensive.

Design Order is tackling this challenge head-on by developing an AI-driven system designed to automate this entire workflow. Their proprietary AI agent, named 'ZeXing AI', transforms conventional 3D design and 2D drafting tools into intelligent agents capable of managing the full spectrum from initial design to simulation and manufacturing output. This integrated industrial AI system aims to significantly accelerate product development cycles.

The 'ZeXing AI' platform operates through a three-stage process. Initially, a 'Shape Design AI' component generates 3D structures based on specified requirements. This is followed by a 'Physics AI' module, which conducts rigorous analysis of physical properties such as strength, rigidity, fluid flow, and magnetic fields. The final stage involves a 'Manufacturing AI' that evaluates production feasibility and generates ready-to-use manufacturing blueprints, ensuring designs are optimized for mass production.

A key focus for Design Order is the sophistication of its 'Physics AI'. The company emphasizes that industrial AI must not only generate designs but also possess the critical ability to validate their engineering soundness. By embedding principles of physics and engineering knowledge directly into its AI models, the platform can accurately calculate and verify the physical characteristics of proposed designs, a crucial step for reliable hardware development.

The company's commercial traction is evident, with contract values in the first half of 2026 showing a substantial 70% year-over-year increase. Projections indicate annual revenue nearing 200 million yuan (approximately $46 million USD), nearly doubling from the previous year. Notably, their 'Result as a Service' (RaaS) model now accounts for roughly one-third of their revenue, signaling a market shift towards clients procuring AI-generated design outcomes directly, rather than solely adopting design tools.

Currently, 'ZeXing AI' is being adopted across diverse sectors including automotive, electronics, and energy. Emerging fields such as aerospace and embodied AI are also seeing increased implementation. Prominent clients include major Chinese automotive manufacturers like Dongfeng Motor and Yutong Bus, rail giant CRRC, and engineering firm China Automobile Industrial Engineering. Design Order is now setting its sights on international expansion, with Germany as its initial European market, and plans to enter Japan, South Korea, and Southeast Asia in 2027.