2021 BRN Discussion, page-4103

Simple answer is Yes.

In 2015 when Peter van der Made was out front of the company selling Brainchip more than he has in the last couple of years and back then he publicly stated that Brainchip's business model was based upon the model ARM pursued. ARM licences IP as its core business. Last year the CEO reaffirmed this model and spoke at length on a number of occasions about how profitable IP sales would be in the order of 96% to 97% profit margins.

The chip production and sale side was and is the lessor side of the market however in the fullness of time as Brainchip matures their will be customers who will see the benefit of the technology but not be large enough or geared up to design their own chips and will want a COTS solution.

Then there are NASA and DARPA under their SWaP model where they are looking to buy COTS hardened chips simply for the economics of same.

The CEO at one stage late last year stated that some of the IP early access customers were waiting on the chip and boards to run their tests to confirm before they proceeded which was reasonable when they were spending 30,40, 50 million dollars.

The fact that Renesas jumped on board when it did even surprised the CEO signing an unconditional agreement which if nothing else suggests that Renesas did not even bother with a lengthy lawyer to lawyer too and fro over every clause in the standard IP agreement. Now Brainchip having Rob Telson from ARM on board perhaps allowed for Brainchip to be presenting a contract that was definitely industry standard in its content and so whatever Renesas needed the IP for was far more important than worrying about fine points in a standard contract.

Even the NaNose development may or may not need a chip depending who in the end becomes the manufacturing partner. I pointed out that Renesas actually has a medical technology division and so if they were to end up being the third corner of the triangle with Brainchip and NaNose they would not need the AKD1000 chip. Then again if they partner with one of the other players in this area then they might.

Suffice to say the success of Brainchip is being built on the ARM model and IP is king under that model.

My opinion only DYOR.
FF.

AKIDA Ballista.