2024 BrainChip Discussion, page-7686

Hi Zac, these are interesting questions. The way I look at it is to first define "what does a sale look like?"

You can't say "we still have not sold any IP's with this (TENNS) yet" - from our perspective (as mushroom [kept in the dark and fed BS] shareholders) a sale becomes tangible only when BRN announce it to the stock market. Such a sale will only occur when a customer has completed their evaluation, designed a product, decided to go-to-market, and then before doing so (as the final step) negotiates their license agreement with BRN. Of course, before starting their evaluation, they would be prudent to get some indication of likely pricing from BRN for their business case.

So, a sale is the final step - doesn't mean that TENNS is still sitting on the shelf waiting for a buyer. This is a product people take home and try for an extensive period before the cash register rings.

Why haven't Brainchip been taken over by a large tech company?

Good question, more guess work based on reading tea leaves...

1. A takeover deal may have already been informally discussed with BRN management. Perhaps they indicated "no." which leaves the takeover company with the option of a hostile takeover. A very unpredictable and less controllable method - particularly for nascent promising tech in a hyped market. The last share might be bought at an incredibly inflated price.
2. It's early days in AI. Potential purchaser's of AI tech are spoilt for choice - many options to evaluate. TENNS is great but relatively new and unproven. Reminds me of BETA vs VHS - VHS won even though BETA was a better technology. But, VHS was perfectly usable. Ubiquity won the day (more vendors and more people who knew how to design devices). Same with PC vs Apple. Too early to make a big investment decision - might be backing the wrong horse.

The Hype Cycle
I'll keep saying it, the engineers of the world are still getting their heads around AI technology. Doing basic "Hello world" stuff is easy. Doing something really useful and saleable not so much.

And useful AI doesn't mean achieving 80% correct positive matches. The market will want 99% - that's why autonomous vehicles are a long way off.

Takes years to learn to develop competence, and then when they start developing applications, inevitably they identify better ways to do it. Many iteration cycles. So the hype has preceded the reality. Stuff is coming but it's still locked away in Research and Development.

Akida is not a final product, it's an enabling technology. Arm Cortex-M85 Processor is a further developed enabling tech.
People have to learn these devices, understand AI algorithms that run on these devices, and build applications using them. We are waiting on them.
Once they are ready to go to market, then we will start seeing sales.

I have no idea how much longer we will have to wait.


IMHO