Hitachi Ventures led the all-equity round for the Toronto-based startup, while Canadian returning investors included BDC Capital and Hazelview Ventures. Xaba CEO Max Moruzzi said the firm will use the money to grow its 24-person team to 35 staff by the end of the year, develop its technology, and expand it to new sectors. (The Logic)

Talking point: Warehouse operators and manufacturers in the automotive and aerospace sectors use Xaba’s AI tools to generate the code that controls the robots in their facilities. Moruzzi claims the startup’s “cognitive control” system quickly produces machine instructions based on simple text prompts or diagrams, a much faster process than existing technology. Xaba’s software can be used to retrofit existing robots, meaning clients don’t need to buy new hardware. Existing models “don’t have a brain, so they are extremely inefficient [and] difficult to adopt [and] use,” Moruzzi said. The new funding is an extension of Xaba’s US$2-million seed round in November 2023.