DEEPX is a South Korean on-device AI chip (NPU, or neural processing unit) startup that makes {hardware} and software program for varied AI functions in digital gadgets. The firm introduced this week that it has raised $80 million (KRW 108.5 billion) in a Series C spherical at a valuation of $529 million (KRW 723 billion), which has surged greater than eight instances from its Series B funding, about $15 million, in 2021.
The Series 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 may also use the brand new capital to expedite creating and launching its subsequent technology of enormous language mannequin (LLM) on-device options.
DEEPX was based in 2018 by CEO Lokwon Kim, who beforehand labored at Apple, Cisco Systems, the IBM Thomas J. Watson Research Center and Broadcom.
The market dimension of worldwide edge AI, additionally known as on-device AI, is projected to achieve $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 carried out, bypassing servers or the cloud,” Kim advised TechCrunch. “The [on-device AI market] is increasing because of pc imaginative and prescient capabilities like facial and voice recognition, sensible mobility, robotics, the web of issues and bodily safety programs.”
Kim stated that if its mass manufacturing begins this yr, potential prospects corresponding to end-product producers will be capable of commercialize their merchandise with DEEPX’s AI chips in 2025.
DEEPX, which has round 65 staff, isn’t 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 stated that his firm’s differentiators embrace price effectivity, power consumption effectivity and All-in-4 AI Total Solution, a complete answer for varied AI functions. Its All-in-4 AI options embrace: DX-V1 and DX-V3, designed for imaginative and prescient programs in house home equipment, surveillance digicam programs, robotic imaginative and prescient and drones; in addition to DX-M1 and DX-H1, that are designed for AI computing packing containers, AI servers, sensible factories and AI booster chips. DEEPX now has greater than 259 patents pending within the U.S., China and South Korea, Kim stated.
“Nvidia’s GPGPU-based options are essentially the most cost-effective for giant language mannequin companies like ChatGPT; the full energy consumed by GPUs working has reached ranges exceed {the electrical} power of a whole nation,” Kim stated. “This collaborative operation know-how between server-scale AI and on-device giant AI fashions are anticipated to cut back power consumption and prices a lot 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, corresponding to Hyundai Kia Motors Robotics Lab and Korean IT firm POSCO DX, to check DEEPX’s AI chip capabilities.
SkyLake Equity Partners, a South Korea-based technology-focused non-public fairness agency, led the newest funding, with participation from BNW Investments, a Korean non-public fairness agency based by the previous president of Samsung LED and Samsung Electronics’ reminiscence chip unit. AJU IB and former backer Timefolio Asset Management additionally participated on this spherical.
