2024 BrainChip Discussion, page-3806

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Iseki

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21/03/24

14:01

Post #: 72995583
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Originally posted by MarketingMan: ↑

ARM, Megachips and others have built giant businesses off the back of selling IP to other technology companies to be used in the development of ASIC (Application Specific Integrated Circuits - aka "dedicated chips") that power tech products.

Selling Edge Boxes and Akida on PC cards that plug into motherboards are mainly used for evaluation and development and will never be "a good little earner."

BRN made the strategic decision 5 years ago that selling chips was a FASTER path to revenue but ultimately would LIMIT the MAXIMUM revenue stream and profitability. They followed the ARM and MEGACHIPS proven model.

The known consequence of this is that BRN would have to wait the 3 to 5 years for its customers to work through R&D, product development, manufacturing strategy, and market launch before license revenues would start flowing.

The second consequence is that BRN customers would insist on non-disclosure agreements during these product development years, and probably also wouldn't want to be disclosing that their products are powered by Akida (to slow competitors following them in, and ultimately when you launch your new beaut product you do want to be rabbiting on about the various suppliers that contributed the technology - their customers don't care, and you want them focusing on your brand not your suppliers).

That's why we are still waiting for license fees.
That's why BRN are shy on announcements.
That's why so many commentators on here keep repeating "BRN hasn't sold a thing."

What they have sold is setting-up an eco-system and working with at least 50 organizations that we know of who are in the middle of that R&D and product development phase mentioned above (see below).

You don't have to be too bright to work out where this is heading.
But impatience drives short-sighted thinking.

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"ARM, Megachips and others have built giant businesses off the back of selling IP to other.."

Indeed, they have. NVIDIA has made an even larger business out of making the GPU chips.

ARM got lucky - they were selected by apple for their iphone CPUs.
Megachips got lucky - they were partnered with nintendo.
NVIDIA got lucky - you used massive GPU's to mine bitcoin.

Not sure why you are posting the work of others but that poster thinks NVIDIA will use Akida, which wouldn't be their usual form.

I love everyone's enthusiasm, but it is worth noting that our current news stories all rely on the fact that Brainchip actually went to the expense of manufacturing the Akida1000.

BRN Price at posting: 34.5¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

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