AI chip startups to have a tough year


The future of AI chip startups is looking grim. That’s according to analysts from Omdia, who expect at least one major startup to exit the market this year due to the global chip shortage, economic downturn, and difficult monetary policies. In this blog post, we’ll explore the findings of Omdia’s Top AI Hardware Startups Market Radar and discuss the implications of their predictions.

Investment in AI Chip Startups
Since 2018, venture capitalists have invested over $6 billion into the top 25 AI chip startups. This investment has focused largely on large-die, CGRA accelerators, which were designed with the aim of loading entire AI models on-chip.

However, the continued growth of AI models is making scalability a critical issue. As such, the future of AI processors may lie in a different direction. More general-purpose programmability is needed for structured and internally complex models.

Exit Strategies for AI Chip Startups
Omdia predicts that at least one major startup will exit the market this year. The most likely exit route is via trade sales to major vendors, such as Apple, Amazon, Intel, NVIDIA, and AMD. These companies have the resources to maintain the skills involved in custom AI silicon.

The Key Barrier to AI Chip Technology
The key barrier to getting new AI chip technology into the market is the need to offer software support that is on par with that of the market leader, NVIDIA. This is a difficult challenge for AI chip startups, especially in light of the current economic climate.

Conclusion
In conclusion, the future of AI chip startups is looking uncertain. The global chip shortage, economic downturn, and difficult monetary policies are making it difficult to raise funding and offer the kind of software support developers are used to from the market leader. As a result, Omdia predicts that at least one major startup will exit the market this year.

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