AI chip startup DEEPX secures $80M Collection C at a $529M valuation

DEEPX is a South Korean on-device AI chip (NPU, or neural processing unit) startup that makes {hardware} and software program for varied AI purposes in digital units. The corporate introduced this week that it has raised $80 million (KRW 108.5 billion) in a Collection C spherical at a valuation of $529 million (KRW 723 billion), which has surged greater than eight instances from its Collection B funding, about $15 million, in 2021. 

The Collection C funding, which brings its complete increase to round $95 million, will go towards mass manufacturing of the startup’s inaugural merchandise — DX-V1, DX-V3, DX-M1 and DX-H1 — in late 2024 for world distribution. The startup will even use the brand new capital to expedite growing and launching its subsequent era of enormous language mannequin (LLM) on-device options. 

DEEPX was based in 2018 by CEO Lokwon Kim, who beforehand labored at Apple, Cisco Methods, the IBM Thomas J. Watson Analysis Middle and Broadcom. 

The market measurement of worldwide edge AI, additionally referred to as on-device AI, is projected to succeed in $107.47 billion by 2029, up from $11.98 billion in 2021, in accordance to a latest report. “The on-device AI market, excluding edge servers, requires AI capabilities to be applied, bypassing servers or the cloud,” Kim instructed TechCrunch. “The [on-device AI market] is increasing attributable to laptop imaginative and prescient capabilities like facial and voice recognition, good mobility, robotics, the web of issues and bodily safety programs.” 

Kim mentioned that if its mass manufacturing begins this yr, potential prospects similar to end-product producers will have the ability to commercialize their merchandise with DEEPX’s AI chips in 2025. 

DEEPX, which has round 65 workers, is just not the one firm that has developed AI chip options. The Korean outfit competes with Hailo, which landed a $120 million funding spherical final month; SiMa.ai, which closed on $70 million, additionally in April; and Axelera, a Belgium-based AI chip startup that secured $27 million in 2022. 

Kim mentioned that his firm’s differentiators embody value effectivity, power consumption effectivity and All-in-4 AI Complete Answer, a complete answer for varied AI purposes. Its All-in-4 AI options embody: DX-V1 and DX-V3, designed for imaginative and prescient programs in house home equipment, surveillance digital camera programs, robotic imaginative and prescient and drones; in addition to DX-M1 and DX-H1, that are designed for AI computing containers, AI servers, good factories and AI booster chips. DEEPX now has greater than 259 patents pending within the U.S., China and South Korea, Kim mentioned. 

“Nvidia’s GPGPU-based options are probably the most cost-effective for giant language mannequin providers like ChatGPT; the overall energy consumed by GPUs working has reached ranges exceed {the electrical} power of a complete nation,” Kim mentioned. “This collaborative operation expertise between server-scale AI and on-device giant AI fashions are anticipated to cut back power consumption and prices quite a bit in comparison with relying solely on information facilities.” 

The startup doesn’t have prospects but however is collaborating with greater than 100 potential shoppers and strategic companions, similar to Hyundai Kia Motors Robotics Lab and Korean IT firm POSCO DX, to check DEEPX’s AI chip capabilities. 

SkyLake Fairness Companions, a South Korea-based technology-focused personal fairness agency, led the most recent funding, with participation from BNW Investments, a Korean personal fairness agency based by the previous president of Samsung LED and Samsung Electronics’ reminiscence chip unit. AJU IB and former backer Timefolio Asset Administration additionally participated on this spherical.