TLDR: DeepX, a prominent South Korean designer of on-device AI chips, has enlisted Morgan Stanley to spearhead its latest funding round as the company sets its sights on an Initial Public Offering (IPO) in 2027. This strategic move follows a successful Series C round last year, where DeepX secured 110 billion won (approximately US$79 million), and the company is now aiming to raise significantly more capital to fuel its growth in the rapidly expanding AI chip market.
DeepX, a leading South Korean company specializing in on-device artificial intelligence (AI) semiconductors, has announced its engagement with Morgan Stanley to manage its upcoming funding round. The company is targeting a significant capital injection as it prepares for a potential Initial Public Offering (IPO) in 2027. This development underscores DeepX’s ambitious growth strategy within the burgeoning global AI chip market.
The South Korean AI chip designer, founded in 2018 by Lokwon Kim, previously raised 110 billion won (approximately US$79 million) in a Series C funding round in 2024, achieving a valuation of $529 million. Key investors in that round included SkyLake Equity Partners, BNW Investments, AJU IB, and TimeFolio Asset Management. DeepX is now seeking to raise substantially more than its previous funding to accelerate its product development and market expansion efforts.
DeepX distinguishes itself by focusing on on-device AI chips, which enable AI functionalities directly on devices such as robots and drones without requiring constant cloud connectivity. This specialization addresses critical concerns regarding privacy and latency, making its solutions particularly valuable for real-time processing applications. The company’s cutting-edge AI chip product line is designed to optimize performance, reduce power consumption, and enhance cost efficiency for AI operations across various industries, including robotics, smart cities, and surveillance.
In a strategic move to bolster its market position, DeepX recently partnered with China’s Baidu Inc. to collaborate on industrial AI projects. As part of this collaboration, DeepX will integrate with Baidu’s open-source deep learning framework, PaddlePaddle, further expanding its ecosystem and reach. The company is also actively collaborating with industry leaders such as Hyundai Kia Motors Robotics Lab, POSCO DX, and Jahwa Electronics, and is expanding partnerships with over 200 global companies.
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The timing of DeepX’s fundraising and IPO plans aligns with a period of explosive growth in the AI chip market. The global AI chip market is projected to expand from $123.16 billion in 2024 to $311.58 billion by 2029, demonstrating a compound annual growth rate (CAGR) of 24.4%. DeepX is one of several South Korean AI chip startups attracting significant investor interest, with fellow startup FuriosaAI Inc. having recently secured $125 million. While representatives for both DeepX and Morgan Stanley have declined to comment on the specifics of the new funding round, the move signals strong investor confidence in the on-device AI sector and DeepX’s technological leadership.
