The meteoric rise of NVIDIA has reignited investor interest in startups developing AI chips, with Blaize, a company founded by former Intel engineers, now preparing to go public via a SPAC deal. The announcement was made on Monday, with trading expected to commence on the NASDAQ this Tuesday.
Established in 2011, Blaize operates out of El Dorado Hills, California, and specializes in AI chips designed for edge computing. Unlike NVIDIA’s chips, which dominate large-scale data centers, Blaize’s technology is aimed at smart devices such as drones, industrial robots, and security cameras. The company has secured $335 million in funding from notable backers, including Samsung and Mercedes-Benz.
Blaize’s approach reflects its belief in the future of AI-powered edge computing. CEO Dinakar Munagala, who spent nearly 12 years at Intel before co-founding Blaize, highlighted the advantages of edge computing in a statement to TechCrunch. He described it as a game-changer, citing its lower power consumption, reduced latency, cost efficiency, and strong data privacy features.
Despite its aspirations, Blaize remains a minor player in the vast AI chip industry and has yet to achieve profitability. The company reported losses of $87.5 million on revenues of just $3.8 million in 2023, according to its prospectus. However, Munagala pointed out that heavy capital investment is essential for chip manufacturers before they can scale. “As you can imagine, [as a] chip company, you do a massive amount of investment, and when the hockey stick comes, it climbs,” he explained to TechCrunch.
The company is optimistic about its future, touting $400 million in potential deals. Among these is a significant agreement with an unnamed defense entity in the EMEA region, which includes a $104 million purchase order. This system is reportedly designed to identify troops, detect small boats, and spot drones. While Munagala refrained from revealing the country involved, he emphasized the growing demand for practical AI applications in the defense sector.
Upon completion of the SPAC merger, Blaize expects to reach a valuation of $1.2 billion. While this figure is modest compared to some competitors, such as Cerebras—a prominent AI chipmaker reportedly targeting a $4 billion valuation—it signals Blaize’s strategic focus on a different market segment. Unlike Cerebras, which primarily serves data center applications, Blaize aims to push AI integration into real-world, physical products.
“Right now, all the AI hype is focused on data centers,” Munagala said. “Interestingly, they’ve overlooked real-world use cases that are already impacting lives, generating revenue, and happening now. We’re focused on the practical application of AI in the physical world.”
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