Literal Labs Secures £4.6m to Deliver Faster, Greener AI Models with Logic-Based Technology

Investment in Literal Labs: A New AI Approach for Product Development

Northern Gritstone has led a £4.6 million seed investment into Literal Labs, a spinout from Newcastle University. This marks Northern Gritstone's first investment connected to the university, known for its strong technology research. Literal Labs is led by Noel Hurley, an ex-Arm executive, and focuses on AI algorithms that use logic-based techniques to create custom AI models.

What Makes Literal Labs Different?

Literal Labs applies the Tsetlin machine approach to AI, which offers several advantages over traditional neural networks. Co-founded by Dr Alex Yakovlev and Dr Rishad Shafik, the company’s technology is faster, more explainable, and significantly more energy efficient.

Unlike neural networks that are inspired by biology, the Tsetlin machine is based on propositional logic. This difference allows for faster inferencing and lower energy consumption. Literal Labs claims its AI can perform inferencing 54 times faster and use 52 times less energy compared to equivalent neural network models.

Why This Matters for Product Development

• Speed: Faster AI inferencing means quicker decision-making and product iterations.
• Energy Efficiency: Lower energy use translates to cost savings and supports sustainability goals.
• Explainability: Logic-based models are easier to interpret, which helps in debugging and refining AI-driven products.

For product developers, these benefits can improve time to market and reduce operational costs while maintaining high AI performance.

Backing and Future Plans

The seed funding round included investors such as Mercuri, Sure Valley Ventures, Cambridge Future Tech SPV, and several angel investors. Duncan Johnson, CEO of Northern Gritstone, emphasized the importance of supporting innovation that delivers practical efficiency gains in AI.

Noel Hurley highlighted the growing need for AI solutions that balance performance with sustainability and cost. This investment will accelerate Literal Labs’ product development, aiming to launch their first product later this year.

Product developers interested in exploring emerging AI techniques might find it valuable to keep an eye on Literal Labs’ progress as their logic-based AI models become available.

For those looking to deepen their AI knowledge and skills relevant to product development, consider exploring Complete AI Training’s courses for product developers.