SEOUL, April 15 - DEEPX, a South Korean startup that produces neural processing units for on-device artificial intelligence, said it will broaden its partnership with Hyundai Motor Group to build a computing platform for generative AI robots using its second-generation low-power chips.
The company is conducting a funding round and is in discussions with the government and private investors to raise more than 600 billion won - equivalent to $408 million - as it prepares for a possible initial public offering in South Korea, DEEPX's chief executive Lokwon Kim said.
Founded by Kim, who previously worked as an engineer at Apple, DEEPX began producing chips late last year. The firm's NPUs are designed to let devices such as robots, factory equipment and autonomous vehicles run AI workloads locally on the device rather than relying on continuous external connectivity.
DEEPX has already supplied AI chips for Hyundai's four-wheeled delivery robots. The next phase of the partnership will see Hyundai's new robotics platform adopt DEEPX's second-generation DX-M2 chips, which the company expects to move into volume production later next year using Samsung Electronics' most advanced 2-nanometer chipmaking technology.
Kim said the DX-M2's lower power consumption can help avoid overheating in power-hungry humanoid robots, though he did not name particular robot models that will incorporate the chips. He described the next-generation chips as optimized for generative AI - citing the capability to enable robots to learn from experience in a manner similar to generative models like ChatGPT.
DEEPX characterized its current-generation devices as roughly 20 times more power-efficient and considerably less expensive than Nvidia's Jetson Orin, a comparison the company uses to highlight energy and cost advantages for on-device deployments.
Hyundai unveiled its Atlas humanoid robot in January and has signaled ambitions to mass-produce robots. The automaker plans to construct a factory with the capacity to manufacture 30,000 robot units per year by 2028. Hyun Dong-jin, head of Hyundai's Robotics LAB, said the collaboration with DEEPX forms part of a broader effort to assemble an ecosystem of on-device computing partners both within South Korea and internationally.
DEEPX counts Baidu among its customers and has set an internal revenue goal of $40 million for the current year. Young Cho, DEEPX's chief financial officer, told reporters that the company's immediate priority is to secure a listing on the Korean stock market, although a secondary U.S. listing via American Depositary Receipts could be contemplated at a later stage.
Executives did not disclose the valuation implied by the ongoing funding round. The company is positioning its DX-M2 chips at the intersection of low-power edge AI and generative model workloads, while simultaneously advancing capital plans ahead of a domestic IPO.
Key context and developments
- DEEPX is expanding a technology partnership with Hyundai to supply DX-M2 NPUs for generative AI-capable robots.
- The firm is pursuing a funding round of more than 600 billion won ($408 million) in the lead-up to a potential listing on South Korea's stock market.
- DX-M2 chips are slated for volume production next year using Samsung Electronics' 2-nanometer manufacturing process.
Corporate statements and targets
- DEEPX began chip production late last year and aims for $40 million in revenue this year.
- Current-generation chips are claimed to be 20 times more power-efficient and notably less costly than Nvidia's Jetson Orin, according to DEEPX's CEO.
- Hyundai plans a factory capable of producing 30,000 robot units annually by 2028 and is working with DEEPX to build an on-device computing ecosystem.
Financial and corporate notes
Executives declined to reveal the valuation implied by the ongoing financing. DEEPX's CFO emphasized a preference for a Korean stock market listing first, with a U.S. ADR listing as a possible future step.
(Exchange rate used in reporting: $1 = 1,470.2800 won)