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 will list on the Nasdaq through a SPAC deal on Tuesday. Blaize has raised $335 million from investors such as Samsung and Mercedes-Benz since its launch in 2011.
The company, based in El Dorado Hills, California, specializes in making AI chips for edge applications. These chips are designed to be integrated into smart products like security cameras, drones, and industrial robots, unlike Nvidia’s chips which are primarily used in large data centers. CEO Dinakar Munagala, who spent nearly 12 years at Intel, stated, “AI-powered edge computing is the future due to its low power consumption, low latency, cost-effectiveness, and data privacy advantages.”
Despite being a small player in the vast AI chip industry, Blaize is currently unprofitable.
In 2023, the company lost $87.5 million on revenue of just $3.8 million. However, chip manufacturers need significant capital to establish their manufacturing capabilities before they can scale up. Munagala explained, “As you can imagine, [as a] chip company you do a massive amount of investment and when the hockey stick comes, it climbs.”
Blaize is highlighting $400 million in potential deals in its pipeline.
Merger to propel Blaize public
One notable deal in its investor deck is a signed purchase order of up to $104 million with an unnamed defense entity in the EMEA region, likely in the Middle East. The system is expected to identify unknown or friendly troops, detect small boats, and spot drones.
Munagala declined to name the specific country involved. After the SPAC merger, Munagala anticipates Blaize to have a valuation of $1.2 billion. This is lower than the private valuations of other AI chipmakers like Cerebras, which filed for an IPO last fall but has not yet gone public due to investor concerns over its heavy reliance on a single Middle Eastern customer.
Unlike Blaize, Cerebras focuses on data center chips. Blaize’s public listing is a bet on a future where AI chips shift from centralized data centers to being more integrated into physical products. Munagala said, “All of the AI hype is happening in the data center.
Interestingly, they’ve totally neglected and forgotten about real physical world use cases that are very real, that are touching people’s lives and are happening now and making money. We’re focused on the practical use of AI in the physical world.”
