DEEPX, a South Korean startup specializing in on-device AI chips, recently announced that it has raised $80 million in a Series C funding round. This funding brings the company’s valuation to $529 million, a significant increase from its previous funding round of $15 million in 2021.
The funds from this round will be used for the mass production of DEEPX’s inaugural products, including the DX-V1, DX-V3, DX-M1, and DX-H1. These products are expected to be globally distributed by late 2024. Additionally, the company plans to use the capital to further develop and launch its next generation of large language model (LLM) on-device solutions.
DEEPX was founded in 2018 by CEO Lokwon Kim, who has an extensive background in companies such as Apple, Cisco Systems, IBM, and Broadcom. The company aims to tap into the growing market for on-device AI, which is projected to reach $107.47 billion by 2029. This market expansion is driven by the increasing demand for AI capabilities in various applications such as computer vision, smart mobility, robotics, the internet of things (IoT), and physical security systems.
According to Kim, if mass production begins this year, potential customers, including end-product manufacturers, will be able to incorporate DEEPX’s AI chips into their products by 2025. DEEPX faces competition from other companies in the AI chip space, such as Hailo, SiMa.ai, and Axelera.
One of DEEPX’s key differentiators is its cost efficiency and energy consumption efficiency. The company also offers an All-in-4 AI Total Solution, which provides a comprehensive solution for various AI applications. This solution includes products designed for vision systems in home appliances, surveillance cameras, robots, drones, as well as AI computing boxes, servers, smart factories, and booster chips.
DEEPX currently holds more than 259 pending patents in the U.S., China, and South Korea, further demonstrating its commitment to innovation in the AI chip industry. Kim believes that collaborative operation technology between server-scale AI and on-device large AI models can significantly reduce energy consumption and costs compared to relying solely on data centers.
Although DEEPX does not have customers yet, it is collaborating with over 100 potential clients and strategic partners, including Hyundai Kia Motors Robotics Lab and Korean IT company POSCO DX. These collaborations will allow DEEPX to test and showcase the capabilities of its AI chips.
The latest investment in DEEPX was led by SkyLake Equity Partners, with participation from BNW Investments, AJU IB, and previous backer Timefolio Asset Management. This support from investors further validates the potential of DEEPX’s technology and its position in the AI chip market.
In conclusion, DEEPX’s recent funding round and its focus on on-device AI chips highlight the increasing demand for AI capabilities in various electronic devices. With its innovative solutions and partnerships with potential clients, DEEPX is poised to make a significant impact in the AI chip industry.
