DEEPX Raises $80M for On-Device AI Chips

DEEPX has secured $80 million in Series C funding, totaling $95 million, to mass-produce its AI chips for various electronic devices.

The South Korean startup DEEPX develops hardware and software for a wide range of artificial intelligence (AI) applications in electronic devices, specifically on-device artificial intelligence chips (NPUs).

This Monday, the firm made an announcement regarding its Series C investment round, which raised $80 million (KRW 108.5 billion) at a value of $529 million (KRW 723 billion). This represents an increase of more than eight times the amount of its Series B funding, which was approximately $15 million in 2021.

The business will use the Series C funding, bringing its total raise to approximately $95 million, to mass produce its first products, the DX-V1, DX-V3, DX-M1, and DX-H1, for worldwide distribution in late 2024.

The fresh funding will also go toward the startup’s on-device large language model (LLM) solutions, which it plans to create and provide sooner rather than later. 

After stints at Apple, Cisco Systems, Broadcom, and IBM’s Thomas J. Watson Research Center, DEEPX CEO Lokwon Kim established the company in 2018. 

Reports indicate that the worldwide edge AI industry will grow from $11.98 billion in 2021 to $107.47 billion in 2029. This market is also known as “on-device AI.” Kim told the media that to compete in the on-device AI market, which excludes edge servers, companies must achieve AI capabilities without relying on servers or the cloud. “Facial and voice recognition, smart mobility, robotics, the internet of things, and physical security systems are driving growth in the [on-device AI market].” 

If mass production starts this year, according to Kim, DEEPX’s AI chips will be available for commercialization to end-product makers and other potential customers in 2025.

Not only does DEEPX (which employs about 65 people) have AI chip solutions, but there are others as well. Axelera, an artificial intelligence chip business based in Belgium, raised $27 million in 2022; Hailo, another Korean outfit, received $120 million in funding just last month; and SiMa.ai, another Korean outfit, closed on $70 million in April. 

He said that efficiency in cost and energy consumption, as well as Kim’s All-in-4 AI Total Solution, a one-stop shop for all things AI, are what set his company apart.

The DX-V1 and DX-V3 are part of its All-in-4 AI solution set, which includes vision systems for home appliances, surveillance cameras, robots, and drones; the DX-M1 and DX-H1 are part of the same set, but for AI servers, smart factories, AI computing boxes, and AI booster chips. According to Kim, DEEPX now has over 259 patents pending in the US, China, and South Korea.