Palette AI raises $28M to scale generative UI toolkit for product designers

Design · 4 min read

Palette AI announced a $28 million Series B led by Atlas Ventures with participation from Meridian Capital and several angel investors from major product teams. The startup, founded by ex-designers and ML researchers, plans to use the capital to expand its core generative UI toolkit that converts high-level product briefs into responsive UI component sets.

The company’s flagship product is a Figma plugin that generates fully accessible, tokenized components and annotations for handoff. New funding will be used to build deeper integrations with design systems, add React/Swift exports, and create a hosted design token registry that syncs design and engineering teams.

Palette emphasizes human-in-the-loop controls: designers can steer layouts and accessibility constraints while the model proposes iterations. The firm says enterprise trials with three large fintech and healthcare customers showed a 40% reduction in early-stage mockup time, a metric investors leaned on during the round.