Kneron Raises $25M to Advance AI Chips for Autonomous Driving

AI Chips and the Future of Autonomous Driving

AI chips, specifically semiconductors engineered to accelerate machine learning processes, are finding diverse applications across numerous industries. A particularly promising area, as highlighted by Albert Liu, involves the integration of these chips into self-driving vehicles.

Kneron's Investment and Expansion

Driven by this potential, Kneron, an AI chip manufacturing startup founded by Liu, has been steadily attracting investment to facilitate its entry into the smart transportation sector. The company recently secured $25 million in new funding.

Lite-On Technology, a leading Taiwanese optoelectronics firm, participated as a strategic investor in this funding round. Additional investors included Alltek, PalPilot, Sand Hill Angels, and Gaingels.

This latest funding brings Kneron’s total investment to over $125 million since its establishment in 2015. Headquartered in San Diego and Taipei, the company boasts a prestigious roster of investors.

Notable Investors and IPO Plans

Among Kneron’s backers are prominent figures such as Hong Kong’s Li Ka-Shing through Horizon Ventures, alongside major corporations like Alibaba, Qualcomm, Sequoia, and Foxconn – a global electronics manufacturing giant and key supplier to Apple.

Liu previously indicated to TechCrunch that the company anticipated achieving profitability in 2023, potentially paving the way for an initial public offering (IPO). However, more recent inquiries regarding the IPO timeline have yielded a more reserved response from the founder, who suggested a U.S. listing remains a likely possibility.

Roadside AI and Infrastructure

“The advancement of Level 4 or Level 5 autonomous driving isn’t solely dependent on the vehicle itself, but also on the implementation of AI infrastructure along roadways,” Liu stated in an interview with TechCrunch, drawing upon his experience in computer vision at Qualcomm.

Kneron’s recent investment followed the unveiling of its first automotive-qualified semiconductors, designed for both advanced driver-assistance systems (ADAS) and fully autonomous vehicles.

Employing roadside perception units capable of communicating with vehicles, emergency services like ambulances could navigate intersections without halting, Liu explained. He further noted that this type of infrastructure is especially beneficial in Asian countries, where traffic complexities often exceed those found in the U.S.

Collaboration with Lite-On

Through this strategic investment, Kneron and Lite-On will collaborate on the development of roadside AI units, powered by Kneron’s cutting-edge edge AI chips.

The startup’s chips are characterized by their “reconfigurable” nature, effectively merging the adaptability of software with the processing speed of hardware. This allows Kneron’s silicon to be utilized for both the central AI engine within a vehicle and the smaller sensors positioned on its exterior, as demonstrated in a recent demo.

Financial Performance and Partnerships

Currently, Kneron generates $3-4 million in monthly revenue from its base of 30 enterprise clients, with 30-40% of this revenue originating from the U.S. market.

The company is actively forging strong partnerships within the industry. In May, Kneron reached an agreement to acquire image signal processor Vatics from Vivotek, a subsidiary of Delta Electronics.

Furthermore, Kneron benefits from a strategic investment from Foxconn, which is currently integrating the startup’s chips into its “MIH” manufacturing platform for electric vehicles.

Note: This article has been updated to clarify that Lite-On Technology was a strategic investor and did not lead the funding round.