Kneron Seeks $1 Billion Valuation as It Expands AI Chip Innovation and Targets Nasdaq Listing in 2025
Oct 26
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Kneron, a Taiwanese-American artificial intelligence (AI) chip startup, is discussing securing $300 million in its latest funding round, potentially valuing the company at approximately $1 billion. This funding round marks a significant milestone for the company, with plans to use the funds for product innovation and international expansion, including establishing a regional office in Saudi Arabia. According to an investor presentation seen by Bloomberg News, Kneron also plans to build a research and development (R&D) facility in the country as part of its expansion strategy.
Founded in 2015 by former Qualcomm engineer Albert Liu, Kneron has its headquarters in San Diego and Taipei. The company has previously received funding from several high-profile investors, including Qualcomm Ventures, Sequoia Capital China (now known as HongShan), iPhone maker Hon Hai Precision Industry Co., and Hong Kong billionaire Li Ka-Shing’s Horizons Ventures. This current round of funding is expected to be Kneron’s last before going public in 2025. The company plans to list on the Nasdaq through a particular purpose acquisition company (SPAC), Spark I Acquisition Corp., sponsored by one of its investors, SparkLabs Group. The listing is slated to occur following a non-binding letter of intent signed between Kneron and Spark I Acquisition Corp.
Kneron is positioning itself as a critical player in the AI chip market, specifically focusing on edge AI applications. The company’s neural processing unit (NPU) chips are designed to power devices like surveillance cameras and electric cars without relying on cloud-based systems. These AI chips and hardware are built into the devices, allowing them to operate efficiently without internet connectivity. Kneron’s NPU chips are versatile and can be used in data centers and consumer goods, making them highly adaptable for various applications. Currently, Kneron’s chips are manufactured by Taiwan Semiconductor Manufacturing Co. and are used in Hon Hai Precision’s electric vehicles and Hanwha Vision Co.’s surveillance cameras.
The company’s planned expansion into Saudi Arabia comes as the kingdom is focused on building up its digital economy. Kneron is not the only AI chip startup eyeing Saudi Arabia for growth opportunities—U.S.-based SambaNova Systems, Groq, and South Korea’s Rebellions have all partnered with Saudi firms in recent years. The move reflects Saudi Arabia’s broader push to attract high-tech companies as it diversifies its economy from oil dependency.
Interest in AI chips, particularly those used in edge applications such as smartphones, drones, and electric vehicles, is rapidly growing. While much of the AI chip investment frenzy has focused on Nvidia, which has become the go-to supplier for chips that train advanced tools like OpenAI’s ChatGPT, startups like Kneron are targeting the burgeoning market for AI chips that run trained models on edge devices. These devices operate locally without needing continuous cloud-based data processing, making them ideal for real-time applications in industries like autonomous vehicles, robotics, and smart home technology.
Bloomberg Intelligence estimates that the edge AI chip market could triple the size of cloud-based AI by the end of 2032, further highlighting the growing demand for this technology. Kneron’s edge AI chips are expected to play a crucial role in this expansion, especially as the company eyes opportunities in consumer and industrial applications.
The push for AI chips on the edge coincides with a broader interest from investors and governments alike in building local semiconductor ecosystems. Saudi Arabia’s National Semiconductor Hub, where Kneron will present its plans during an Investor Day event later this year, is part of its strategy to establish itself as a global player in the semiconductor and AI industries. Kneron’s focus on edge AI and its planned R&D presence in Saudi Arabia positions the company at the forefront of these developments.
As Kneron prepares for its public listing and continues to expand its product offerings, the company will significantly impact the future of AI hardware development. With its innovative NPU chips, strategic partnerships, and global expansion plans, Kneron is well-positioned to capitalize on the rapidly growing demand for AI technologies in both consumer and industrial sectors. The next few years will be critical for the company as it looks to secure its place in the AI chip market and bring cutting-edge solutions to a broader range of industries worldwide.