Blaize Set to Go Public as AI Chip Innovator with Edge-Driven Focus

Jimmy Jing

— 2 min read
Blaize Set to Go Public as AI Chip Innovator with Edge-Driven Focus

The surge in demand for AI technology has rejuvenated investor interest, especially around AI chip startups. Blaize, a promising company founded by former Intel engineers, announced on Monday its plans to go public on the NASDAQ through a SPAC deal this Tuesday.

Company Background and Investment Highlights

Established in 2010, Blaize has accumulated $335 million in investments from major companies including Samsung and Mercedes-Benz. Headquartered in El Dorado Hills, California, the company specializes in AI chip manufacturing for edge applications. Unlike larger firms such as NVIDIA, Blaize focuses on integrating its technology into smart, everyday products like security cameras, drones, and industrial robots.

CEO's Vision for AI-powered Edge Computing

"AI-powered edge computing is the future due to its low power consumption, low latency, cost-effectiveness and data privacy advantages," Dinakar Munagala, CEO and former Intel employee for nearly 12 years, commented in a statement.

Currently a smaller player in the AI chip market, Blaize reported a loss of $87.5 million against a revenue of $3.8 million for 2023, as detailed in its prospectus. The high capital demands for chip manufacturing, which Blaize asserts is conducted in the U.S., precede scalable operations.

Financial Outlook and Strategic Deals

"As you can imagine, [as a] chip company you do a massive amount of investment and when the hockey stick comes, it climbs," CEO Munagala remarked. Despite current losses, Blaize is optimistic due to potential future deals worth $400 million. Among them is a significant contract proposal with an unnamed EMEA defense entity, estimated at $104 million, aimed at systems for identifying troops, spotting boats, and detecting drones. Munagala, however, refrained from disclosing the specific nation involved.

Blaize's Valuation Expectations

Following its merger, Blaize's valuation is anticipated to reach $1.2 billion. Though this is below the private valuations of competitors like Cerebras — a major player in AI chips specializing in data center solutions — Blaize remains focused on its niche of AI integration into everyday products. Cerebras has faced delays in its public offering due to investor concerns over a singular Middle Eastern client.

"All of the AI hype is happening in the data center. Interestingly, they’ve totally neglected and forgotten about real physical world use cases that are very real, that are touching people’s lives and are happening now and making money," Munagala explained. "We’re focused on the practical use of AI in the physical world."

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