AI pushes chip startups to develop faster, bigger processors

Deep learning, an artificial intelligence-based technology that requires increased computer power and speed to support the latest algorithms, is driving a host of startups to develop AI-specific chips. According to a New York Times report, venture capitalists have now shifted focus on chip startups to help them open up a new revenue stream and become a dominant force in this emerging segment. The NYT report said that close to 45 startups were involved in developing chips that can handle a series of tasks, from speech recognition to boost the hardware requirements of self-driving cars. While the startups may not be in a position to challenge the dominance of chip majors such as Intel, Qualcomm and Nvidia, their focus will be on finding a niche to make their businesses profitable. In 2017, venture capital firms invested over $1.5 billion in such startups, with five of them raising more than $100 million, each. This was nearly two times the investment compared to 2015.