Brainchip goes into production
Brainchip shares continued their rollercoaster ride, soaring again after the company announced that volume production of its microprocessors that promise to mimic the workings of the human brain has commenced.
The billion-dollar company has had a volatile year since rocketing to 97 cents back in September. While the euphoria was short-lived, and shares crashed back into the thirties, the stock has remained a favourite of Reddit boards and stock forums, filled with optimistic hopefuls, after the company promised that commercialisation of its technology was not far away.
Shares are up 47% for the year and have exploded by more than 1400% over the past 12 months.
Before Christmas Brainchip finally reported its first paying customer contract months earlier than expected. It announced the signing of an intellectual property license agreement with the US subsidiary of Japan-based Renesas Electronics. The agreement provides for various payment terms including potential ongoing royalties.
For the year ending December 31, Brainchip reported a loss of $US26.8 million of revenue of just $US120,829.
Brainchip founder and CEO Peter van der Made said: “This move to manufacturing is a major milestone for BrainChip and for the industry at large as the first realistic opportunity to bring AI processing capability to edge devices for learning, enabling personalization of products without the need for retraining.”
Brainchip said production units are expected to be available around August 2021.
The company also recently parted with its CEO Robert Nardelli after a mutual agreement to terminate his contract “without cause, effective immediately” allowing him to leave the company and “pursue other interests”.