Semiconductor startup Kneron, based in the United States, has announced a successful funding round, raising an additional $49 million to support its ambitions in the artificial intelligence (AI) chip sector. This brings the total funding for the company in this round to an impressive $97 million.
Notable investors in this round include Foxconn, the Taiwanese company famous for assembling Apple’s iPhones, and Alltek, a communications technology firm. Kneron’s strategic move comes in response to the burgeoning investor interest in AI and the underlying chip technologies. This enthusiasm is exemplified by Nvidia’s remarkable 180% surge in stock price and the recent IPO of semiconductor designer Arm in the United States.
Nvidia, a leader in the field, manufactures graphics processing units (GPUs) that are primarily deployed in servers and data centres. These GPUs possess the computational prowess necessary to train AI systems by processing vast quantities of data, a key requirement for numerous AI services, such as cloud-based applications like ChatGPT.
In contrast, Kneron specializes in designing chipsets intended for use in consumer electronics and automobiles, enabling AI to operate at the “edge” rather than relying on cloud computing. This approach offers advantages in terms of security and speed, as AI applications can function independently on devices without requiring a connection to the cloud.
Kneron’s semiconductors, known as neural processing units (NPUs), include its latest product, the KL730, specifically designed for automotive applications. The company touts the chip’s capability to support autonomous driving systems. Albert Liu, CEO of Kneron, emphasized the cost-effectiveness of NPUs compared to GPUs, suggesting that this could drive demand for Kneron’s technology. He noted, “So that will force people to switch into the more low cost (NPUs).“
Kneron’s stated objective, following this funding infusion, is to further its efforts in making autonomous driving a reality through AI technology. Kneron faces stiff competition from industry giants like Qualcomm and MediaTek, both of which are actively pursuing on-device AI capabilities with their chip offerings. Additionally, a multitude of startups are vying to establish themselves in the AI semiconductor market.
Kneron’s successful funding round underscores the growing importance of AI in various industries, including autonomous vehicles, and the increasing recognition of the advantages of edge AI over cloud-based solutions. As Kneron continues to develop its NPU technology, it aims to carve out a significant presence in the competitive AI chip market, potentially challenging the dominance of industry leader Nvidia.
