Exclusive: AI Research Startup FYDY In Talks To Raise $12 Mn From Lightspeed, General Catalyst

Frontier AI research startup FYDY (Fuzzy Dynamics), which is operating in stealth mode, is in advanced talks to raise $12 Mn (about ₹115 Cr) in its maiden funding round, sources told Inc42.

Lightspeed Venture Partners and General Catalyst are co-leading the round, which is being discussed at a $50 Mn valuation, the sources said.

While questions sent to FYDY didn’t elicit any response, Lightspeed Venture Partners and General Catalyst did not respond.

As per FYDY’s LinkedIn page, the startup was incorporated in 2025. It has five cofounders – Alapan Chaudhuri, Shivansh Subramanian, Anvay Karmore, Tanishq Chaudhary, and Zeeshan Ahmed.

FYDY says its founding team includes ICPC World Finalists and Physics & Astronomy Olympiad alumni.

The San Francisco-headquartered startup’s employees are spread across India and the US. It is currently hiring researchers and engineers, among other roles. 

FYDY describes itself as a frontier AI research business operating in stealth. It is developing “cognitive machines” that learn continuously from experience, with the long-term goal of building safe artificial superintelligence capable of understanding and acting autonomously in the real world.

FYDY has also launched OpenScientist, an AI research studio currently in private beta. According to its website, the startup initially built the platform for its own research and is rolling it out to a small group of labs and researchers.

The platform is designed to help users search research papers and databases, explore mathematical problems, run experiments, and analyse data.

“We are working with leading researchers across reinforcement learning, world models, robotics and neuroscience. These are the fields we believe converge into machine cognition,” it says on its website.

The funding talks come as Lightspeed and General Catalyst continue to back AI startups across scientific research and enterprise applications.

In August, AI-powered materials discovery startup Discovered Materials announced a $9 Mn seed round led by Lightspeed India Partners. The startup is developing AI agents to automate semiconductor materials research, including simulation, synthesis, and experimental validation.

Meanwhile, Sol Foundry emerged from stealth last month with $4 Mn from General Catalyst, Nexus Venture Partners, DeVC, Peercheque, and Kunal Shah. The startup is building an AI assistant that acts on commitments made over email, preparing research, documents, and other tasks for users to approve.

According to Inc42’s Indian Tech Startup Funding Report, Q3 2026, AI startups raised $438 Mn across 35 deals during the quarter, making AI the most funded sector. Funding rose 265% YoY, although capital remained largely concentrated in startups building AI applications.

The post Exclusive: AI Research Startup FYDY In Talks To Raise $12 Mn From Lightspeed, General Catalyst appeared first on Inc42 Media.