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Sagence is building analog chips to run AI | TechCrunch

Nov 19, 2024 - techcrunch.com
Sagence AI, a company founded by Vishal Sarin, is developing energy-efficient analog chips as an alternative to power-hungry GPUs used in AI models. Sarin argues that the current trend of increasing GPU use in data centers, which is expected to drive a 160% increase in electricity demand by 2030, is not sustainable. Sagence's analog chips, unlike digital ones, can represent data using a range of different values, require fewer components to perform certain calculations, and do not need to transfer data from memory to processors, potentially enabling faster task completion and higher data-density.

However, analog chips have their downsides, including the need for more accurate manufacturing and being harder to program. Sagence plans to bring its chips to market in 2025 and is currently engaged with multiple customers. The company has raised $58 million in funding since its founding six years ago and is planning to raise more capital to expand its team. Despite the challenges, including competition and the high cost of chipmaking, Sagence hopes to prove that its chips are more power-efficient and deliver higher efficiency than alternatives.

Key takeaways:

  • Sagence AI, founded by Vishal Sarin, is developing energy-efficient alternatives to GPUs, focusing on analog chips that can represent data using a range of different values.
  • Analog chips, unlike digital ones, don't transfer data from memory to processors, potentially enabling them to complete tasks faster and have higher data-density.
  • Sagence plans to bring its chips to market in 2025 and is currently engaged with multiple customers, competing with other AI analog chip ventures like EnCharge and Mythic.
  • The company has raised a total of $58 million since its founding and is planning to raise capital again to expand its 75-person team.
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