DEEPX, an AI Chip Startup, Raises $80M in Series C Funding
South Korean startup, DEEPX, specializing in on-device AI chips, recently announced securing $80 million in a Series C funding round. This latest round brings the company’s valuation to a staggering $529 million, representing an eight-fold surge from the $15 million secured in its Series B funding in 2021. Consequently, the total amount raised by DEEPX so far amounts to approximately $95 million.
Investment to Accelerate Product Development and Launch
The funds raised from the Series C round will expedite the mass production of DEEPX’s inaugural products — DX-V1, DX-V3, DX-M1, and DX-H1 — slated for global distribution in late 2024. Moreover, the startup will leverage this capital to speed up the development and launch of its next-generation large language model (LLM) on-device solutions.
The Market for Global Edge AI
The global edge AI, or on-device AI market, is projected to reach $107.47 billion by 2029, a stark rise from $11.98 billion in 2021. DEEPX’s CEO, Lokwon Kim, highlighted that the on-device AI market requires AI capabilities to be implemented, bypassing servers or the cloud. The market expansion is largely driven by AI applications like facial and voice recognition, smart mobility, robotics, IoT, and physical security systems. For instance, Kim anticipates that DEEPX’s AI chips will be commercialized by end-product manufacturers in 2025, provided mass production begins this year.
DEEPX’s Competitive Landscape and Differentiators
Despite being a relatively young company, founded in 2018, DEEPX competes with other established AI chip solutions like Hailo, SiMa.ai, and Axelera. However, DEEPX differentiates itself through cost efficiency, energy consumption efficiency, and its comprehensive All-in-4 AI Total Solution for various AI applications. Additionally, DEEPX has over 259 patents pending in the U.S., China, and South Korea.
The Future of AI Chip Solutions
Looking ahead, the integration of server-scale AI and on-device large AI models is expected to significantly reduce energy consumption and costs. DEEPX is already collaborating with over 100 potential clients and strategic partners, like Hyundai Kia Motors Robotics Lab and Korean IT company POSCO DX, to test its AI chip capabilities. With the latest investment led by SkyLake Equity Partners, BNW Investments, AJU IB, and previous backer Timefolio Asset Management, DEEPX is set to redefine the landscape of AI chip solutions.
In this rapidly evolving tech world, the potential of on-device AI is just beginning to unfold. As DEEPX propels forward with its innovative solutions, the impact on various AI applications will be monumental, ultimately shaping the future of technology.
