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How One Struggling Chip Company Benefited From Middle Eastern Investors’ AI Ambitions

Jan 16, 2024 - forbes.com
California-based semiconductor company, Blaize, is planning to go public via a SPAC merger with BurTech, a blank check company led by Shahal Khan. The deal values Blaize at $894 million and is expected to bring in $71 million in new capital. The company, which has raised over $200 million from venture capital firms, has recently attracted investment from Middle Eastern investors interested in AI, including the family offices of the royal families from Saudi Arabia, UAE, and Qatar.

However, Blaize's ties to the Middle East could pose challenges due to the U.S. government's tightening of semiconductor export controls to countries like Saudi Arabia, Qatar, and the UAE. This is due to concerns that China is using the region to circumvent American restrictions on obtaining the technology. Blaize CEO, Dinakar Munagala, has emphasized that the company will adhere to American laws and has all the necessary export control processes in place.

Key takeaways:

  • California-based semiconductor company, Blaize, is planning to go public via a SPAC merger with a blank check company led by Shahal Khan, BurTech, at an enterprise value of $894 million.
  • Blaize has been signing deals in the Middle East, including a Memorandum of Understanding with Mark AB Capital, a fund controlled by members of Abu Dhabi’s royal family.
  • As an American chip company, Blaize’s new ties to the region could present challenges as the U.S. government is tightening semiconductor export controls to countries like Saudi Arabia, Qatar and the UAE amid concerns that China is using the region to circumvent American restrictions on obtaining the technology.
  • Blaize CEO, Dinakar Munagala, emphasized that the company would adhere to American laws and has all of the export control processes in place to ensure they conform to all the rules.
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