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{ float: left; margin-right: 2em; }.wp-site-blocks > .alignright { float: right; margin-left: 2em; }.wp-site-blocks > .aligncenter { justify-content: center; margin-left: auto; margin-right: auto; }:where(.wp-site-blocks) > * { margin-block-start: 24px; margin-block-end: 0; }:where(.wp-site-blocks) > :first-child { margin-block-start: 0; }:where(.wp-site-blocks) > :last-child { margin-block-end: 0; }:root { --wp--style--block-gap: 24px; }:root :where(.is-layout-flow) > :first-child{margin-block-start: 0;}:root :where(.is-layout-flow) > :last-child{margin-block-end: 0;}:root :where(.is-layout-flow) > *{margin-block-start: 24px;margin-block-end: 0;}:root :where(.is-layout-constrained) > :first-child{margin-block-start: 0;}:root :where(.is-layout-constrained) > :last-child{margin-block-end: 0;}:root :where(.is-layout-constrained) > *{margin-block-start: 24px;margin-block-end: 0;}:root :where(.is-layout-flex){gap: 24px;}:root :where(.is-layout-grid){gap: 24px;}.is-layout-flow > 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0-1.456.317-1.982.882L1.491 8.888a3 3 0 0 0-.61.977 3.2 3.2 0 0 0 0 2.307c.141.365.348.697.61.977a2.7 2.7 0 0 0 1.983.85 2.73 2.73 0 0 0 1.994-.88l-.662-.711a1.9 1.9 0 0 1-.605.436 1.75 1.75 0 0 1-1.43 0 1.9 1.9 0 0 1-.605-.436"/></svg> </a> </div> </div> </div> </div> <div class="article-hero__middle"> <h1 class="article-hero__title wp-block-post-title">AI chip startup DEEPX secures $80M Series C at a $529M valuation </h1> </div> <div class="article-hero__bottom "> <div class="article-hero__authors"> <div class="is-style-default wp-block-tc23-author-card"> <div class="wp-block-group wp-block-tc23-author-card__info is-layout-flow wp-block-group-is-layout-flow"> <div class="wp-block-tc23-author-card-name"> <a class="wp-block-tc23-author-card-name__link" href="https://techcrunch.com/author/kate-park/">Kate Park</a> </div> </div> </div> </div> <div class="article-hero__date"> <div class="wp-block-post-date"><time datetime="2024-05-09T16:00:00-07:00">4:00 PM PDT · May 9, 2024</time></div> 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1-.605.436 1.75 1.75 0 0 1-1.43 0 1.9 1.9 0 0 1-.605-.436"/></svg> </a> </div> </div> <main class="wp-block-group template-content is-layout-constrained wp-block-group-is-layout-constrained"> <div class="wp-block-columns article is-layout-flex wp-container-core-columns-is-layout-3 wp-block-columns-is-layout-flex"> <div class="wp-block-column is-layout-flow wp-block-column-is-layout-flow"> <div class="entry-content wp-block-post-content is-layout-constrained wp-block-post-content-is-layout-constrained"> <p id="speakable-summary" class="wp-block-paragraph">DEEPX is a South Korean on-device AI chip (NPU, or neural processing unit) startup that makes hardware and software for various AI applications in electronic devices. The company announced this week that it has raised $80 million (KRW 108.5 billion) in a Series C round at a valuation of $529 million (KRW 723 billion), which has surged more than eight times from its Series B funding, about $15 million, in 2021. </p> <p class="wp-block-paragraph">The Series C funding, which brings its total raise to around $95 million, will go toward mass production of the startup’s inaugural products — DX-V1, DX-V3, DX-M1 and DX-H1 — in late 2024 for global distribution. The startup will also use the new capital to expedite developing and launching its next generation of large language model (LLM) on-device solutions. </p> <div class="ad-unit ad-unit--mobile ad-unit--has-placeholder ad-unit--display wp-block-tc-ads-ad-slot has-background has-gray-100-background-color"> <div class="ad-unit__ad" id="us-tc-ros-mw-mid-center" data-unitcode="us_tc_ros_mw_mid_center" data-sizes="[[300,250],[3,2],[2,2]]" style="min-height:250px;min-width:300px;"> </div> </div> <div class="ad-unit ad-unit--desktop ad-unit--native wp-block-tc-ads-ad-slot"> <div class="ad-unit__ad" id="us-tc-ros-dt-native-midarticle" data-unitcode="us_tc_ros_dt_native_midarticle" data-sizes="["fluid"]" style="min-height:0px;min-width:0px;"> </div> </div> <p class="wp-block-paragraph"><a href="https://deepx.ai/" target="_blank" rel="noreferrer noopener nofollow">DEEPX</a> was founded in 2018 by CEO Lokwon Kim, who previously worked at Apple, Cisco Systems, the IBM Thomas J. Watson Research Center and Broadcom. </p> <p class="wp-block-paragraph">The market size of global edge AI, also called on-device AI, is <a href="https://www.fortunebusinessinsights.com/edge-ai-market-107023" target="_blank" rel="noreferrer noopener nofollow">projected to reach $107.47 billion by 2029</a>, up from $11.98 billion in 2021, according to a recent report. “The on-device AI market, excluding edge servers, requires AI capabilities to be implemented, bypassing servers or the cloud,” Kim told TechCrunch. “The [on-device AI market] is expanding due to computer vision capabilities like facial and voice recognition, smart mobility, robotics, the internet of things and physical security systems.” </p> <p class="wp-block-paragraph">Kim said that if its mass production begins this year, potential customers such as end-product manufacturers will be able to commercialize their products with DEEPX’s AI chips in 2025. </p> <p class="wp-block-paragraph">DEEPX, which has around 65 employees, is not the only company that has developed AI chip solutions. The Korean outfit competes with <a href="https://techcrunch.com/2024/04/02/hailo-ai-chip-startup-lands-120m-to-battle-nvidia/" target="_blank" rel="noreferrer noopener">Hailo</a>, which landed a $120 million funding round last month; <a href="https://techcrunch.com/2024/04/04/sima-ai-70m-funding-multimodal-genai-chip/" target="_blank" rel="noreferrer noopener">SiMa.ai</a>, which closed on $70 million, also in April; and <a href="https://techcrunch.com/2022/10/25/ai-chip-startup-axelera-lands-27m-in-capital-to-commercialize-its-tech/" target="_blank" rel="noreferrer noopener">Axelera</a>, a Belgium-based AI chip startup that secured $27 million in 2022. </p> <p class="wp-block-paragraph">Kim said that his company’s differentiators include cost efficiency, energy consumption efficiency and All-in-4 AI Total Solution, a comprehensive solution for various AI applications. Its All-in-4 AI solutions include: DX-V1 and DX-V3, designed for vision systems in home appliances, surveillance camera systems, robot vision and drones; as well as DX-M1 and DX-H1, which are designed for AI computing boxes, AI servers, smart factories and AI booster chips. DEEPX now has more than 259 patents pending in the U.S., China and South Korea, Kim said. </p> <div class="marfeel-experience-inline-cta wp-block-tc23-marfeel-experience"> </div> <p class="wp-block-paragraph">“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.” </p> <p class="wp-block-paragraph">The startup does not have customers yet but is collaborating with more than 100 potential clients and strategic partners, such as Hyundai Kia Motors Robotics Lab and Korean IT company POSCO DX, to test DEEPX’s AI chip capabilities. </p> <p class="wp-block-paragraph">SkyLake Equity Partners, a South Korea-based technology-focused private equity firm, led the latest investment, with participation from BNW Investments, a Korean private equity firm founded by the former president of Samsung LED and Samsung Electronics’ memory chip unit. AJU IB and previous backer Timefolio Asset Management also participated in this round. </p> <div class="ad-unit ad-unit--mobile ad-unit--has-placeholder ad-unit--display wp-block-tc-ads-ad-slot has-background has-gray-100-background-color"> <div class="ad-unit__ad" id="us-tc-ros-mw-mid-center" data-unitcode="us_tc_ros_mw_mid_center" data-sizes="[[300,250]]" style="min-height:250px;min-width:300px;"> </div> </div> <div class="ad-unit ad-unit--desktop ad-unit--native wp-block-tc-ads-ad-slot"> <div class="ad-unit__ad" id="us-tc-ros-dt-native-midarticle" data-unitcode="us_tc_ros_dt_native_midarticle" data-sizes="["fluid"]" style="min-height:0px;min-width:0px;"> </div> </div> <p class="wp-block-paragraph"></p> </div> <div class="wp-block-tc23-post-relevant-terms"> <p class="wp-block-paragraph">Topics</p> <div class="tc23-post-relevant-terms__terms"> <a href="https://techcrunch.com/tag/artificial-intelligence/" rel="tag">Artificial Intelligence (AI)</a><span class="tc23-post-relevant-terms__separator">, </span><a href="https://techcrunch.com/region/asia/" rel="tag">Asia</a><span class="tc23-post-relevant-terms__separator">, </span><a href="https://techcrunch.com/tag/cloud-computing/" rel="tag">Cloud Computing</a><span class="tc23-post-relevant-terms__separator">, </span><a href="https://techcrunch.com/tag/deepx/" rel="tag">DEEPX</a><span class="tc23-post-relevant-terms__separator">, </span><a href="https://techcrunch.com/category/fundraising/" rel="tag">Fundraising</a><span class="tc23-post-relevant-terms__separator">, </span><a href="https://techcrunch.com/tag/skylake-equity-partners/" rel="tag">SkyLake Equity Partners</a><span class="tc23-post-relevant-terms__separator">, </span><a href="https://techcrunch.com/region/asia/south-korea/" rel="tag">South Korea</a> </div> </div> <div style="height:1px" aria-hidden="true" class="wp-block-spacer"></div> <div class="ad-unit ad-unit--desktop ad-unit--has-placeholder ad-unit--display 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