AI startup Blaize targets IPO amid growing investor interest

Blaize, a California-based AI chipmaker focused on edge computing, is preparing to go public in a SPAC deal that values the company at $1.2 billion, marking a significant moment in the booming AI chip industry.

US, AI investments, Venture capital, Capital funding

AI chip startup Blaize has announced plans to go public through a SPAC deal, which will see the company listed on Nasdaq with a valuation of $1.2 billion. Founded in 2011 by former Intel engineers, Blaize specialises in AI chips for edge devices such as drones, security cameras, and industrial robots. Unlike traditional data centre chips, its products are designed for real-world applications that prioritise low latency, power efficiency, and privacy.

The company has raised $335 million from prominent investors, including Samsung and Mercedes-Benz, and claims to have $400 million worth of deals in the pipeline. CEO Dinakar Munagala, who spent over a decade at Intel, emphasised that Blaize’s approach focuses on practical AI solutions for physical environments, differentiating the company from competitors like Nvidia, which primarily targets large-scale data centres.

Despite facing financial challenges, including a loss of $87.5 million in 2023, Blaize is betting on a future where AI chips are embedded into everyday devices. The startup is also involved in defence-related contracts, with one major deal involving AI systems capable of identifying troops and detecting drones, further highlighting its niche in edge computing.

Blaize’s IPO marks a significant shift in the AI chip industry, signalling investor interest in decentralised AI technologies that extend beyond traditional data centre applications.