I have followed up my initial skepticism with some additional research, including reading Higher Intelligence, the patents, and announcements. The research has reinforced my concerns that from both a technical and business perspective this is potentially a great trading stock as it rides the enthusiastic waves between euphoria and disappointment. I do not see it as a long term investment - in my opinion it is no microsoft.
Firstly from a technical point of view Brainchip is not alone. I suggest readers compare the TrueNorth chip from IBM and the DARPA SyNAPSE project. see:
TrueNorth has 1 million neurons, BrainChip talks of 10,000 and I am unclear if BrainChip has actual working chips or merely a design, but prepared to give them the benefit.
The SyNAPSE project cost $53.5 million and was funded by the Defense Advanced Research Projects Agency. BrainChip are hawking their entire technology in the order off $4 million.
I also observe that IBM and the authors of the paper in the third reference above have multiple patents in the field that are more extensive and provide better coverage than those held by BrainChip.
I conclude that BrainChip is behind in the technical development stakes and lacks the resources and capacity to compete.
From a business perspective I am plagued by several doubts.
Why does a California (Silicon Valley anyone?) company need to come to Australia to raise finance. It is usually the reverse that innovative Australian technology is scooped up by overseas business. And why is a mining company the vehicle for the reverse takeover, was the case insufficiently compelling for any Australian company with any sort of technical credibility.
From both a technical and business perspective I would back IBM to win this race.
I know these will be unwelcome observations to those who want to believe they have uncovered the next big thing. It is an exciting field which offers great promise.
I am willing to invest at a small scale based on the potential successful hype rather than any assessment that there is a substantial product that is viable in either the short or long term. I will not bet the ranch, and I will exit on the first sign of any spike or pump and dump.
GLTA - just be aware of what you are investing in. Please do your own research.
BRN Price at posting:
33.5¢ Sentiment: None Disclosure: Held
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