Charles Rollett
Nvidia’s rise has fueled interest in artificial intelligence (AI) chip startups. One of the companies fueling this interest, Blaize, founded by former Intel engineers, recently announced that it will go public on the Nasdaq through a SPAC deal.
About blaize startup
Founded in 2011, Blaize specializes in the production of special chips for artificial intelligence. The company mainly develops chips used in edge devices, such as security cameras, drones and industrial robots. Headquartered in El Dorado Hills, California, the company has raised $335 million in funding from major investors such as Samsung and Mercedes-Benz.
According to Blaize CEO Dinakar Munagala, the company’s goal is to develop AI-based edge computing systems. He noted: “AI-based edge computing has advantages such as low power consumption, low latency, cost-effectiveness and data privacy, and is the future.”
Financial status
Blaize is currently a small player rather than a giant in the AI chip market. In 2023, the company made a profit of 3.8 million dollars, but suffered a loss of 87.5 million dollars. However, due to the high capital requirements of the chip manufacturing industry, the company hopes to make up for its current losses in the future.
Munagala likened the development of the company to a “hockey stick”, which means that large investments are required at first, and then rapid growth is achieved. Blaize also notes that $400 million in deals are in the pipeline. One of these deals is related to the defense sector in the Middle East and includes a purchase order worth $104 million.
Competition and the future
Blaize is a smaller player in the AI chip industry than competitors like Cerebras. While Cerebras focuses primarily on manufacturing chips for centralized data centers, Blaize focuses on physical products and edge applications. According to Munagala, Blaize’s main difference lies in its focus on “the practical use of artificial intelligence in the physical world.”
Blaize’s IPO will value the company at $1.2 billion. This is a significant step forward in the AI chip industry, enabling greater integration of AI from centralized systems into products in the physical world.
Summary
Blaize’s public offering on the Nasdaq is a milestone for the AI chip industry, providing new growth opportunities for the technology. The company’s edge-focused strategy sets it apart from its competitors and could further expand the practical uses of AI in the future.
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