Literal Labs

Overview

Literal Labs is an innovative Artificial Intelligence (AI) company that specializes in developing energy-efficient, logic-based AI models. Founded in 2023, the company is headquartered in Newcastle upon Tyne, United Kingdom. It was co-founded by Dr. Alex Yakovlev and Dr. Rishad Shafik, who are both prominent figures in logic-based AI technology. The company was spun out of Newcastle University and is led by CEO Noel Hurley, a former Vice President at Arm. Recently, Literal Labs raised £4.6 million ($6.2 million USD) in pre-seed funding from investors including Northern Gritstone and Mercuri.

Recent Developments

June 2025: Literal Labs recently announced that it secured £4.6 million ($6.2 million USD) in pre-seed funding. This funding was led by Northern Gritstone and co-led by Mercuri. The funding will be used to expand the company's engineering team and bring its first commercial product to the market later in 2025. This product will cater to customers requiring energy-efficient AI models for edge AI applications, regulatory markets, and battery-operated products.
2024: The company doubled its headcount from six to twelve employees, reflecting its growth and expansion. Leon Fedden, formerly the AI Deep Learning platform lead at AstraZeneca, was appointed as the Chief Technology Officer. This strategic hire aims to bolster the company’s technical expertise as it prepares to launch its first product.
October 2024: Literal Labs participated in the International Symposium on the Tsetlin Machine and presented their fast, low-energy AI models at CES 2025 in Las Vegas.
November 2024: The company was a finalist in the Extreme Tech Challenge AI competition and presented its state-of-the-art AI models at the Web Summit in Lisbon.

Attribute	Information
Founding Date	2023
Headquarters	Newcastle upon Tyne, United Kingdom
Founders	Dr. Alex Yakovlev, Dr. Rishad Shafik
Revenue	Not publicly disclosed
Profits	Not publicly disclosed
Key Investors	Northern Gritstone, Mercuri, Sure Valley Ventures
Industry	Artificial Intelligence
Number of Employees	12 (as of 2024)

Early History

Literal Labs was conceptualized by Dr. Alex Yakovlev and Dr. Rishad Shafik, both of whom are highly regarded in the field of logic-based AI. The company emerged as a spin-out from Newcastle University with the mission to create AI models that are not only efficient but also explainable and energy-efficient. In 2023, Noel Hurley, who spent over two decades at Arm leading product marketing and the CPU division, joined as the CEO. The decision to focus on the Tsetlin machine approach was inspired by the work of mathematician Mikhail Tsetlin, presenting an alternative to traditional neural networks with a strong emphasis on efficiency in computation and energy use.

Company Profile and Achievements

Literal Labs focuses on developing AI models using the Tsetlin machine, a logic-based approach that is markedly faster, more energy-efficient, and more transparent than conventional neural network models. The Tsetlin machine uses propositional logic, which simplifies the computational complexity associated with AI operations. Some notable achievements of Literal Labs include:

Benchmark Success: Literal Labs achieved a 54 times faster inferencing capability than classical machine learning techniques while consuming 52 times less energy.
Innovative AI Models: Literal Labs' AI models are designed to replace large, energy-intensive GPU-heavy algorithms, which are commonly used in the industry.
Strategic Growth: After securing significant funding in 2025, the company aimed to expand its engineering team and accelerate its product development efforts.
Community Engagement: The company has been actively participating in international symposiums and tech challenges to showcase its cutting-edge solutions and gain industry recognition.

Current Operations and Market Position

Currently, Literal Labs is operating at the forefront of AI innovation, with its focus on developing and deploying logic-based models. These models address critical needs in sectors such as edge AI and industries requiring energy-efficient computation solutions. The company's strategic emphasis is on taking its products to markets that prioritize sustainable AI solutions for social and regulatory compliance and battery-powered devices. By offering faster and more energy-efficient alternatives to conventional neural networks, Literal Labs positions itself as a disruptor in the AI sector.

Conclusion

Literal Labs stands out in the AI industry for its pioneering work in logic-based AI technology. With the guidance of seasoned executives and rooted in strong academic foundations, the company has set itself on a trajectory to transform AI models into practical, explainable, and sustainable solutions. As the company progresses towards the launch of its first commercial product, it aims to significantly impact AI applications in various regulated markets and industries. Its future seems promising as it continues to attract investors and talent that align with its vision for efficient and transformative AI technology.