BrainChip enters trading halt on 'material customer contract'

BrainChip Holdings gained 3% at the opening of trading on Tuesday. Although only 7 minutes into the session, a Pause in Trading notice was issued, which was quickly followed up with a Trading Halt announcement. The company requesting the immediate halt pending an anticipated announcement of a ‘material customer contract’.

The news comes after a volatile six months of trading, in which the share price has rocketed from 3 cents to 97 cents, only to settle back in the 30 cent range over the last few months.

What does Brainchip Holdings do?

BrainChip has developed a potentially revolutionary advanced neural networking processor that brings artificial intelligence to the edge in a way that existing technologies are not capable. The solution is high performance, small, ultra-low power and enables a wide array of edge capabilities that include local training, learning and inference.

The company markets an innovative event-based neural network processor that is inspired by the spiking nature of the human brain and implements the network processor in an industry-standard digital process. By mimicking brain processing BrainChip has pioneered a spiking neural network, called Akida, which is both scalable and flexible to address the requirements in edge devices.

At the edge, sensor inputs are analysed at the point of acquisition rather than transmission to the cloud or a data centre. Akida is designed to provide a complete ultra-low power AI Edge Network for vision, audio and smart transducer applications. The reduction in system latency provides a faster response and a more power-efficient system that can reduce the large carbon footprint datacenters.

Why all the excitement?

While Brainchip is still highly speculative and pre-revenue, in recent months, the company has announced several partnerships and collaborations. Two auto manufacturers, including Valeo in Europe and another unnamed partner in Detroit, announced evaluation and development agreements. Shortly followed by a partnership with Magik Eye Inc, to market a breakthrough solution for object detection, object classification and gesture recognition. Although it was the announcement of a collaboration with US-based Vorago Technologies for a Phase 1 NASA project that meets spaceflight requirements, that sent the share rocketing, albeit temporarily.

No doubt many traders and investors will be watching the next few days closely for the impending announcement.