DEEPX, a South Korean startup specializing in on-device AI chips (NPU, or neural processing unit), has raised $80 million (KRW 108.5 billion) in a Series C round at a valuation of $529 million (KRW 723 billion). This valuation marks a significant surge, exceeding eight times the valuation from its Series B funding round in 2021, which amounted to about $15 million.
The Series C funding, bringing the total raise to approximately $95 million, will be allocated towards mass production of the startup’s inaugural products — DX-V1, DX-V3, DX-M1, and DX-H1 — scheduled for late 2024 for global distribution. Additionally, the capital will expedite the development and launch of the company’s next generation of large language model (LLM) on-device solutions.
Founded in 2018 by CEO Lokwon Kim, who has a background at companies such as Apple, Cisco Systems, IBM Thomas J. Watson Research Center, and Broadcom, DEEPX aims to tap into the expanding market of global edge AI, projected to reach $107.47 billion by 2029. Kim highlighted the growth drivers for on-device AI, including computer vision capabilities like facial and voice recognition, smart mobility, robotics, the internet of things, and physical security systems.
If mass production commences this year, potential customers such as end-product manufacturers can integrate DEEPX’s AI chips into their products by 2025. DEEPX faces competition from other AI chip solutions providers such as Hailo, SiMa.ai, and Axelera. However, Kim emphasizes DEEPX’s differentiators, which include cost efficiency, energy consumption efficiency, and its comprehensive All-in-4 AI Total Solution catering to various AI applications.
The startup boasts over 259 pending patents in the U.S., China, and South Korea. Despite not having customers yet, DEEPX is collaborating with over 100 potential clients and strategic partners, including Hyundai Kia Motors Robotics Lab and Korean IT company POSCO DX, to test its AI chip capabilities.
SkyLake Equity Partners, a South Korea-based technology-focused private equity firm, led the latest investment round, with participation from BNW Investments, AJU IB, and previous backer Timefolio Asset Management.
