Investor interest in AI chip startups has surged, driven by the meteoric rise of Nvidia. Among the emerging players, Blaize, an AI chip manufacturer founded by former Intel engineers, announced it will go public via a SPAC deal on Tuesday, listing on the Nasdaq. The company made the announcement on Monday.
Founded in 2011 and headquartered in El Dorado Hills, California, Blaize specializes in AI chips designed for edge applications. Unlike chips typically found in large data centers, Blaize’s technology powers products such as security cameras, drones, and industrial robots. CEO Dinakar Munagala emphasized the advantages of edge computing, citing its low power consumption, reduced latency, cost-effectiveness, and enhanced data privacy.
The company has raised $335 million in funding from high-profile investors, including Samsung and Mercedes-Benz. Despite its potential, Blaize remains a small player in the vast AI chip market. In 2023, it reported $3.8 million in revenue but incurred losses of $87.5 million, according to its prospectus. Munagala noted the capital-intensive nature of chip manufacturing, highlighting that substantial investment is needed to scale operations.
Blaize projects $400 million in pipeline deals, with one notable agreement involving up to $104 million for a defense system capable of identifying troops, spotting small boats, and detecting drones. This order reportedly comes from an unnamed EMEA defense entity, although Munagala declined to disclose specifics.
After its SPAC merger, Blaize anticipates a valuation of $1.2 billion. While this figure is modest compared to rivals like Cerebras, which was privately valued at $4 billion and sought to double its valuation before delaying its IPO, Blaize aims to differentiate itself through its focus on physical-world AI applications.
“We’re focused on the practical use of AI in the physical world,” Munagala explained. He contrasted Blaize’s approach with the industry’s current focus on data centers, arguing that AI’s real impact lies in applications integrated into everyday products.
This IPO positions Blaize as a noteworthy player in the evolving AI landscape, highlighting the potential for edge computing to complement centralized data center solutions.
Featured image courtesy of Blaize
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