DEEPX Secures $80M in Series C Funding, Valued At $529M

DEEPX, a cutting-edge AI chip startup, recently closed an impressive Series C funding round, underscoring the company’s rapid growth and the strong market demand for its advanced AI technology solutions

DEEPX is a South Korean startup specializing in on-device AI chips (NPUs or neural processing units) for electronic devices. The company develops both hardware and software for a variety of AI applications.

This week, the organization disclosed that it had completed a Series C funding round, raising $80 million (KRW 108.5 billion) at a valuation of $529 million (KRW 723 billion). This valuation represents an increase of over eight times compared to the $15 million raised in 2021 for Series B funding.  

The Seris C funding bringing the total to approximately $95 million, will be used to mass produce the inaugural products of the startup—DX-V1, DX-V3, DX-M1, and DX-H1—for global distribution by late 2024.

The new funding will also accelerate the development and release of the startup’s next-generation large language model (LLM) on-device solutions. 

Lokwon Kim, who previously worked for Apple, Cisco Systems, the IBM Thomas J. Watson Research Center, and Broadcom, established DEEPX 2018 as its CEO.  

According to a recent report, the global edge AI market, also called on-device AI, is anticipated to increase from $11.98 billion in 2021 to $107.47 billion by 2029. “Except edge servers, the on-device AI market necessitates implementing AI capabilities that circumvent servers or the cloud,” Kim explained to Techcrunch.

“Computer vision capabilities such as voice and face recognition, smart mobility, robotics, the internet of things, and physical security systems are driving the growth of the [on-device AI market].”  

According to Kim, DEEPX’s AI chips will be commercially available to potential clients, including end-product manufacturers, in 2025, should bulk production commence this year.  

DEEPX, comprising approximately 65 personnel, has not been the sole developer of AI semiconductor solutions.

In competition with the Korean firm are Hailo, which closed a $120 million funding round last month; Sima.ai, a Belgian AI semiconductor startup that raised $70 million in April; and Axelera, which received $27 million in 2022. 

Kim stated that his organization is distinguished by its energy efficiency, cost-effectiveness, and All-in-4 AI Total Solution, a comprehensive solution designed to support a wide range of AI applications.

DX-V1 and DX-V3, intended for vision systems in home appliances, surveillance camera systems, robot vision, and drones, are among its All-in-4 AI solutions. DX-M1 and DX-H1, on the other hand, are intended for AI computing boxes, AI servers, intelligent factories, and AI booster processors.

Kim highlighted that DEEPX boasts more than 259 pending patent applications across key markets such as the United States, China, and South Korea. This robust intellectual property portfolio underscores DEEPX’s commitment to innovation and its strategic positioning in the rapidly evolving landscape of AI technology.

“Nvidia’s GPGPU-based solutions are the most cost-effective for large language model services like ChatGPT; the total power consumed by GPUs operating has reached levels exceed the electrical energy of an entire country,” Kim said. 

“This collaborative operation technology between server-scale AI and on-device large AI models are expected to reduce energy consumption and costs a lot compared to relying solely on data centers.” 

More than a hundred potential clients and strategic partners, including the Hyundai Kia Motors Robotics Lab and the Korean IT firm POSCO DX, are collaborating with the startup to test the AI processor capabilities of DEEPX.  

The most recent investment was led by SkyLake Equity Partners, a technology-focused private equity firm based in South Korea.

BNW Investments, a Korean private equity firm founded by the former president of Samsung lead and Samsung Electronics’ memory chip unit, also participated. In addition to AJU IB, timefolio Asset Management, an earlier sponsor, was also engaged in this funding round.