Blaize, a startup founded by former Intel engineers, is set to become the first AI chip company to go public in 2025. The company announced on Monday that it would begin trading on the Nasdaq on Tuesday through an SPAC deal. Since its launch in 2011, Blaize has raised $335 million from investors such as Samsung and Mercedes-Benz.
The company, based in El Dorado Hills, California, specializes in manufacturing AI chips for edge applications. These chips are designed to be integrated into smart products like security cameras, drones, and industrial robots rather than primarily used in large data centers. CEO Dinakar Munagala, who worked at Intel for nearly 12 years, stated, “AI-powered edge computing is the future due to its low power consumption, low latency, cost-effectiveness, and data privacy advantages.
Blaize is a small player in the vast AI chip industry and is highly unprofitable.
In 2023, the company reported a loss of $87.5 million on revenue of only $3.8 million. However, chip manufacturers require significant capital investments to build their manufacturing capabilities before scaling up production.
Blaize goes public on Nasdaq
Blaize claims that its manufacturing is done in the United States. Despite its current financial situation, Blaize touts $400 million in deals in the pipeline. One notable deal mentioned in its investor deck is a signed purchase order for up to $104 million with an unnamed defense entity in the Middle East for a system that can identify unknown or friendly troops, detect small boats, and spot drones.
Munagala expects Blaize to have a valuation of $1.2 billion after the SPAC merger. This valuation is lower than those of other closely-watched AI chipmakers like Cerebras, which filed for an IPO last fall but has not yet gone public due to investor concerns over its reliance on a single Middle Eastern customer. Blaize’s public offering bets on a future where AI chips move from centralized data centers to being more integrated into physical products.
Munagala emphasized, “All of the AI hype is happening in the data center. Interestingly, they’ve neglected and forgotten about the real physical world use cases that are very real, touching people’s lives, and are happening now and making money. We’re focused on the practical use of AI in the physical world.”
