Blaize, a startup focused on developing AI chips for edge applications, is set to go public through a SPAC deal in January 2025. Founded in 2011 by former Intel engineers, Blaize aims to address a growing need for AI chips in products like security cameras, drones, and industrial robots. Unlike giants like Nvidia, whose chips dominate data centers, Blaize’s products are designed for more localized, energy-efficient, and cost-effective computing solutions.

CEO Dinakar Munagala, with nearly 12 years at Intel, believes that AI-powered edge computing is the future due to its low power consumption and low latency. These chips promise a wide range of benefits, including improved data privacy and faster processing, which could be critical for applications in fields such as surveillance and robotics.

Though Blaize remains a relatively small player in the AI chip market, it has raised $335 million from investors, including Samsung and Mercedes-Benz. However, it is still unprofitable, reporting a loss of $87.5 million on just $3.8 million in revenue in 2023, according to its prospectus. This is typical for chipmakers, who often require substantial investment in manufacturing before scaling. Blaize’s chips are primarily manufactured in the U.S., setting it apart from many competitors.

Despite its current financial challenges, Blaize is confident about its growth. It has secured deals worth $400 million, including a notable $104 million contract with a defense entity in the Middle East. While Munagala was tight-lipped about the specifics, he hinted that the deal involves advanced systems capable of identifying military targets and detecting drones.

Blaize’s SPAC merger is expected to give it a valuation of $1.2 billion, which is modest compared to competitors like Cerebras, another AI chipmaker aiming for an IPO. However, Blaize’s focus on edge computing and practical applications in the physical world—unlike Cerebras’ emphasis on data centers—sets it apart. Munagala is confident that the company is positioning itself for long-term success by tapping into real-world AI applications that are already impacting industries globally.

Munagala's statement about the neglected potential of AI in real-world use cases underscores Blaize's vision: “We’re focused on the practical use of AI in the physical world,” he says.

SOURCE: TECHCRUNCH | PHOTO: BLAIZE