Qualcomm-backed AI startup Kneron launches next generation AI chips to challenge Nvidia and AMD

Artificial intelligence chip startup Kneron on Wednesday unveiled its next-generation products, targeting the growing demand for AI from businesses and presenting a robust alternative to industry giants like Nvidia and AMD.

The Taiwan-based startup, backed by industry heavyweights Qualcomm and Foxconn, introduced the KNEO 330, its second-generation “edge GPT” server, designed for on-premises AI inference with impressive capabilities. This server boasts 48 TOPs of AI computing power, supports up to eight concurrent connections, and is compatible with large language models and stable diffusion algorithms.

GPT, or generative pre-trained transformer, refers to AI algorithms trained on extensive data sets capable of generating text and images, with popular examples including OpenAI’s ChatGPT.

In a blog post, Kneron said, “The KNEO 330 is Kneron’s latest and second private Edge GPT server. Its first unit, the KNEO 300, launched in 2023, already has enterprise customers in manufacturing, financial services, and universities, including Stanford and UCLA. The KNEO 330 boasts 48 TOPs of AI computing power, up to 8 concurrent connections, supports LLMs, and stable diffusion. Its RAG accuracy is impressively similar to cloud solutions under much lower hardware conditions. The KNEO 330 drastically reduces the overall cost of AI for small enterprises by 30%-40%.”

Kneron’s first model, the KNEO 300, launched in 2023, and has already found adoption among enterprise customers in sectors such as manufacturing, financial services, and academia. Dubbed “GPT in a box” by CEO Albert Liu, these units empower organizations to utilize AI models securely within their own firewalls, leveraging enterprise data without the need to transmit it to the cloud.

The latest announcement closely follows the launches of new AI chips by Nvidia and AMD, signaling intensified competition in the AI chip market. While Nvidia and AMD’s offerings are tailored for large-scale data centers operated by tech giants, Kneron aims to cater to businesses seeking to manage AI applications on-site.

In addition to the KNEO 330, Kneron revealed that its latest KL830 processor chip will be integrated into a new PC model. This move challenges the dominance of Intel and AMD in the PC chip market. The KL830 allows AI applications to run directly on the device, enhancing privacy by eliminating the need for internet connectivity.

Currently, many businesses depend on cloud services from giants like Microsoft and Amazon to access generative AI capabilities. These cloud providers, known as “hyperscalers,” are significant customers for chip manufacturers like Nvidia, using vast amounts of hardware to support AI model training in their extensive data centers.

Kneron is betting on a shift in business preferences, anticipating that companies will increasingly seek to operate AI systems independently of major cloud providers. The KNEO 330 is designed for organizations that prioritize privacy and wish to maintain control over their data, such as high-tech firms, medical centers, and financial institutions.

Albert Liu, CEO of Kneron, explained the growing demand for localized AI solutions in an interview with CNBC. “We see a strong market need among big high-tech companies, medical centers, and financial institutions that care deeply about their privacy. They don’t want to upload sensitive data to platforms like OpenAI,” Liu said.

Liu envisions a future where businesses leverage Kneron’s technology to develop their own AI applications using on-premise servers, thus retaining full control over their data.

Founded in 2015 by Albert Liu, Kneron has emerged as a leading provider of edge AI solutions. Liu, an alumnus of National Cheng Kung University with a PhD from UCLA, has a rich background in AI development from his tenure at Qualcomm, Samsung Electronics, and MStar.

Kneron has attracted substantial investment, with its Series A funding in November 2017 drawing contributions from Alibaba Entrepreneurs Fund, CDIB, Himax Technologies, Inc., Qualcomm, Thundersoft, Sequoia Capital (and its sub-fund Cloudatlas), and CYZONE. Further bolstered by a Series A1 financing round led by Horizons Ventures in May 2018, Kneron has secured over $33 million in funding to date.

With its latest product launches, Kneron is poised to reshape the landscape of AI hardware, offering innovative alternatives to the entrenched industry leaders.

Kneron KNEO 330 AI chip