Liquid
Liquid AI is a US-based startup founded in 2023 that develops small, efficient AI models designed to run on consumer devices rather than in data centers.
Profile
Liquid AI builds small, efficient AI models that run on consumer devices like laptops and phones, rather than in cloud data centers.
Liquid AI is a US-based startup founded in 2023 that develops small, efficient AI models designed to run on consumer devices rather than in data centers. The company was co-founded by MIT robotics professor Daniela Rus. In December 2024, Liquid AI raised a $250 million Series A led by AMD Ventures, at a valuation over $2 billion, according to Bloomberg.
The round also included The Pags Group, OSS Capital, and Duke Capital Partners. The company's core technology is a type of neural network architecture it calls "liquid neural networks," which it claims requires far less compute than traditional transformer models. Liquid AI has released a series of models under the LFM (Liquid Foundation Model) brand, including the LFM2.5-8B-A1B (May 2026), LFM2.5-VL-450M (April 2026), and LFM2.5-350M (March 2026).
The company's licensing model is unusual: its LFM Open License v1.0, based on Apache 2.0, permits free commercial use only for companies with annual revenue under $10 million. Enterprises above that threshold must purchase a commercial license. In April 2026, Liquid AI announced a partnership with Mercedes-Benz to scale embedded in-car intelligence.
Liquid AI has not disclosed its own revenue or headcount. The company's strategy is to compete with larger foundation model providers by targeting on-device and edge computing use cases, where latency, privacy, and hardware constraints matter. Its models are designed to run on consumer hardware such as laptops and phones, and it has published benchmarks showing tool-calling agent performance on consumer GPUs.
Products by Liquid
Who buys this
- Automotive OEMs seeking embedded AI for in-car intelligence
- Consumer electronics manufacturers wanting on-device AI capabilities
- Enterprise software companies needing private, local AI inference
- Robotics and edge computing firms with latency and power constraints
Publicly disclosed clients
- Mercedes-Benz
Strengths and what to watch
Strengths
- Raised $250 million Series A in December 2024 from AMD Ventures and others, with a valuation over $2 billion, providing substantial runway for a startup of its age.
- Secured a high-profile automotive partnership with Mercedes-Benz in April 2026, signaling enterprise traction in a capital-intensive vertical.
- Novel licensing model (LFM Open License v1.0) with a $10 million revenue threshold for free commercial use, potentially creating a low-friction path to adoption among startups and SMBs.
Watch for
- Revenue concentration risk: the Mercedes-Benz partnership is the only named client; the company has not disclosed any other commercial customers or revenue figures.
- Competitive pressure from large incumbents: Apple, Qualcomm, and Google are all investing heavily in on-device AI models, and Liquid AI's small-model approach faces well-funded rivals.
- Licensing friction: the $10 million revenue threshold in the LFM Open License may deter larger enterprises from adopting the free tier, while the commercial license pricing is undisclosed, creating uncertainty for potential buyers.
Recent moves
- 8w ago LFM2.5-8B-A1B: An Even Better On-Device Mixture of Experts
- 3mo ago Mercedes-Benz and Liquid AI partner to scale embedded in-car intelligence
- 4mo ago LFM2.5-VL-450M: Structured Visual Intelligence, Edge to Cloud
- 4mo ago LFM2.5-350M: No Size Left Behind
- 7mo ago Introducing LFM2.5: The Next Generation of On-Device AI
Key Information
- Industry
- Commercial AI Research
- Founded
- 2023
Frequently Asked Questions
What is Liquid AI and what do they do?
Liquid AI is a US startup founded in 2023 that builds small, efficient AI models designed to run on consumer devices like laptops and phones instead of cloud data centers. It was co-founded by MIT robotics professor Daniela Rus.
How much funding has Liquid AI raised and who invested?
Liquid AI raised a $250 million Series A in December 2024 led by AMD Ventures, at a valuation over $2 billion. Other investors included The Pags Group, OSS Capital, and Duke Capital Partners.
What are liquid neural networks and how are they different?
Liquid neural networks are a type of neural network architecture developed by Liquid AI that requires far less compute than traditional transformer models. This efficiency allows them to run on consumer hardware like laptops and phones.
What models has Liquid AI released under the LFM brand?
Liquid AI has released several models under the LFM brand, including the LFM2.5-8B-A1B in May 2026, LFM2.5-VL-450M in April 2026, and LFM2.5-350M in March 2026, all designed for on-device AI.
What is the LFM Open License v1.0 and who can use it for free?
The LFM Open License v1.0, based on Apache 2.0, permits free commercial use only for companies with annual revenue under $10 million. Enterprises above that threshold must purchase a commercial license from Liquid AI.
What is Liquid AI's partnership with Mercedes-Benz about?
In April 2026, Liquid AI announced a partnership with Mercedes-Benz to scale embedded in-car intelligence. This signals enterprise traction for Liquid AI in the automotive sector, though it remains the company's only named client.
Sources
- www.liquid.ai — Company website, product descriptions, blog posts, and partnership announcement with Mercedes-Benz.
- techcrunch.com — Series A funding amount ($250M), lead investor (AMD), valuation (>$2B), and co-founder Daniela Rus.
- techcrunch.com — Confirmation that Liquid AI was among US AI startups raising $100M+ in 2025.
- www.crunchbase.com — Series A funding details: lead investor AMD Ventures, other investors (The Pags Group, OSS Capital, Duke Capital Partners).
- www.liquid.ai — LFM Open License v1.0 terms: $10M revenue threshold for free commercial use, requirement to purchase commercial license above that.