Blaize Set to Become the First AI Chip Startup to Go Public in 2025
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Amelia Cross
- January 13, 2025
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Blaize to Become First AI Chip Startup to Go Public in 2025 via SPAC Deal
The rise of Nvidia has reignited investor interest in AI chip startups, with Blaize, founded by former Intel engineers, preparing to go public on Nasdaq through a SPAC deal. The announcement, made on Monday, sets the public listing date for Tuesday.
Founded in 2011 and headquartered in El Dorado Hills, California, Blaize has raised $335 million from major investors, including Samsung and Mercedes-Benz. Unlike Nvidia, which dominates data center AI chips, Blaize focuses on edge computing, providing AI chips for smart devices like security cameras, drones, and industrial robots.
“AI-powered edge computing is the future due to its low power consumption, low latency, cost-effectiveness, and data privacy advantages,” Blaize CEO Dinakar Munagala, a former Intel engineer, told TechCrunch.
Despite its potential, Blaize is currently unprofitable, reporting a loss of $87.5 million on $3.8 million in revenue for 2023. The company emphasizes the capital-intensive nature of chip manufacturing, which it conducts in the U.S., and expects a sharp growth trajectory as its technology scales.
Blaize has $400 million in potential deals lined up, including a $104 million purchase order with an unnamed EMEA defense entity. This system aims to identify troops, detect drones, and spot small boats, Munagala noted, without revealing the client’s identity.
The company anticipates a $1.2 billion valuation post-SPAC merger, lower than the $4 billion valuation sought by Cerebras, another AI chipmaker that remains private. While Cerebras targets data center chips, Blaize bets on a future where AI chips power physical products integrated into daily life.
“All the AI hype is focused on data centers, overlooking real-world applications that impact lives and generate revenue now,” Munagala explained. “We’re committed to practical AI applications in the physical world.”
