AI chip startup DEEPX secures $80M Series 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 numerous AI functions in digital gadgets. 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 international distribution. The startup may also use the brand new capital to expedite growing and launching its subsequent era of huge language mannequin (LLM) on-device options. 

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

The market dimension of world edge AI, additionally referred to as on-device AI, is projected to reach $107.47 billion by 2029, up from $11.98 billion in 2021, in accordance to a current 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 resulting from laptop imaginative and prescient capabilities like facial and voice recognition, good mobility, robotics, the web of issues and bodily safety techniques.” 

Kim stated that if its mass manufacturing begins this 12 months, potential prospects similar to end-product producers will be capable to commercialize their merchandise with DEEPX’s AI chips in 2025. 

DEEPX, which has round 65 workers, will not be 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 Whole Resolution, a complete resolution for numerous AI functions. Its All-in-4 AI options embrace: DX-V1 and DX-V3, designed for imaginative and prescient techniques in residence home equipment, surveillance digicam techniques, robotic imaginative and prescient and drones; in addition to DX-M1 and DX-H1, that are designed for AI computing bins, 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 stated. 

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

The startup doesn’t have prospects but however is collaborating with greater than 100 potential purchasers 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.