DeepX, an artificial intelligence semiconductor company, has signed more than 30 purchase order contracts within seven months of mass-producing its first-generation chip. The company plans to use this momentum to evolve from a chip maker into a physical AI infrastructure company.
"Just as TSMC built what Taiwan is today, DeepX will build Korea's physical AI semiconductor industry," CEO Kim Nok-won said at a press conference at the company's headquarters in Pangyo, Gyeonggi Province, on Monday. "We will contribute to making Korea a country that exports physical AI."
DeepX is targeting the physical AI market because it believes its neural processing unit (NPU)-based first-generation chip "DX-M1" is competitive in the market. The company began mass production of the DX-M1 in August last year and started signing purchase orders in earnest in December. By March this year, the number of contracts exceeded 30.
"The total contract value is $6.6 million, of which overseas orders account for approximately $4.5 million," Kim said. "We are establishing a global export base."
Kim attributed the rapid transition from chip production to sales to the chip's power efficiency. The DX-M1 operates at an ultra-low power consumption of 2-3 watts on average, making it 20 times more efficient than graphics processing units (GPUs) while costing one-tenth the price. This is why China's Baidu decided to adopt DeepX chips in its AI systems and ordered an initial volume of approximately 40,000 units.
"We are collaborating with Hyundai Motor Group Robotics Lab and will begin mass production by the end of this year of chips to be applied to the delivery robot 'DAL-e' and the mobility platform 'MobED,'" he said. "We will continue to cooperate with Hyundai Motor to achieve more visible results."
DeepX also presented a development roadmap for its next-generation chip "DX-M2." The product will use Samsung Foundry's 2-nanometer process, with mass production targeted for 2027.
The company is targeting revenue of approximately $40 million (about 59.2 billion won) this year. Once its ongoing Series D funding round is completed, the company plans to pursue an initial public offering.
"Once the funding round is completed, we plan to appoint a lead underwriter," said Cho Young-ho, DeepX's chief financial officer. "We have completed preliminary preparations for domestic listing, including transition to International Financial Reporting Standards (IFRS) and application for a designated auditor."
