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AI chip startup DEEPX secures $80M Series C at a $529M valuation  | TechCrunch

May 09, 2024 - techcrunch.com
South Korean AI chip startup DEEPX has raised $80 million in a Series C funding round, bringing its total funding to around $95 million. The funds will be used for mass production of its inaugural products, DX-V1, DX-V3, DX-M1, and DX-H1, set for global distribution in late 2024, and to speed up the development of its next generation of large language model (LLM) on-device solutions. The company, founded in 2018 by former Apple, Cisco Systems, IBM Thomas J. Watson Research Center, and Broadcom employee Lokwon Kim, is valued at $529 million.

DEEPX competes with other AI chip solution companies like Hailo, SiMa.ai, and Axelera. The company's differentiators include cost efficiency, energy consumption efficiency, and its All-in-4 AI Total Solution, a comprehensive solution for various AI applications. DEEPX is currently working with over 100 potential clients and strategic partners to test its AI chip capabilities. The latest investment round was led by SkyLake Equity Partners, with participation from BNW Investments, AJU IB, and previous backer Timefolio Asset Management.

Key takeaways:

  • South Korean AI chip startup DEEPX has raised $80 million in a Series C funding round, bringing its total funding to around $95 million. The funds will be used for mass production of its inaugural products and to expedite the development of its next generation of large language model on-device solutions.
  • The company, founded in 2018 by Lokwon Kim, competes with other AI chip solution providers such as Hailo, SiMa.ai, and Axelera. DEEPX's differentiators include cost efficiency, energy consumption efficiency, and its All-in-4 AI Total Solution.
  • The global edge AI market, also known as on-device AI, is projected to reach $107.47 billion by 2029, up from $11.98 billion in 2021. DEEPX is positioning itself to take advantage of this growth, with plans for its AI chips to be commercialized in 2025.
  • While DEEPX does not yet have customers, it is collaborating with over 100 potential clients and strategic partners, including Hyundai Kia Motors Robotics Lab and Korean IT company POSCO DX. The latest investment round was led by SkyLake Equity Partners, with participation from BNW Investments, AJU IB, and previous backer Timefolio Asset Management.
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