Very interesting Frangipani, appears IBM may be looking at Hybrid with AKIDA running with their traditional AI.
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Wondering if IBMs sense of urgency is because Intel are making their move.
Hi Bravo,
Hi Space Cadet,
stocksdownunder.com
Ujjwal Maheshwari, January 30, 2026
BrainChip (ASX:BRN) falls 6% Despite Major 10,000-Chip Defence Order- Is It a Buy?
BrainChip (ASX:BRN) shares hit 52-week lows despite an initial 10,000-chip order from Parsons and the AKD1500 production ramp. Is the market missing an edge AI buying opportunity or is the US$4.3M cash burn a red flag?
BrainChip (ASX:BRN) Falls 6% Despite Defence Deals and AKD1500 Production Ramp- Is This a Buying Opportunity?
BrainChip Slips Despite Defence Orders and AKD1500 Ramp
BrainChip Holdings (ASX: BRN) dropped around 6% on Thursday despite releasing what appears to be its strongest quarterly update in years. The neuromorphic AI chip maker reported improved cash flows, a strengthened balance sheet, and meaningful progress on defence contracts, yet the market pushed shares toward 52-week lows near 16 cents.
For investors watching the edge AI space, this disconnect raises a critical question: Is the market missing something, or does the selloff reflect legitimate concerns about a company still burning cash with minimal revenue? We believe the answer lies somewhere in between.
BrainChip’s Defence Push Gains Traction With Parsons Partnership
The most significant development from the December quarter was the advancement of a multi-year partnership with Blue Ridge Envisioneering, a subsidiary of NYSE-listed Parsons Corporation. This deal includes an initial order of 10,000 chips over the agreement term and establishes a supply framework for high-volume defence deployments.
Parsons is a Fortune 500 defence contractor with deep ties to the US military and intelligence agencies. Their commitment to BrainChip’s technology validates the Akida platform’s relevance in defence applications where low power and edge processing are essential.
The company also secured an order from Nex Novus for medical sensing applications. However, these early wins remain small relative to BrainChip’s A$350 million market capitalisation. Early commercial validation is encouraging, but the path to meaningful revenue remains in its infancy.
AKD1500 Production Begins- What This Means for Revenue
Perhaps the most important milestone this quarter was the commencement of volume production for the AKD1500 edge AI co-processor. This chip delivers 800 giga operations per second while consuming under 300 milliwatts, a performance that positions it well for battery-powered devices and heat-constrained environments.
The AKD1500 integrates with x86, ARM, and RISC-V systems, providing compatibility across a wide range of applications. With volume production now underway, BrainChip expects to commence shipping production-grade parts in Q3 2026, marking a critical transition from R&D to commercial scaling.
In our view, this transition from development to manufacturing separates genuine commercial potential from perpetual R&D spending. If BrainChip converts its design wins into recurring chip sales over the next 12 to 18 months, the investment case strengthens considerably. Until that revenue materialises, the stock remains speculative.
The Investor’s Takeaway
The bull case centres on defence tailwinds and BrainChip’s improved financial position. The company bolstered liquidity to US$31.7 million following an A$35 million placement, providing runway for commercialisation. Operating outflows narrowed to US$4.3 million for the quarter. With 61 patents protecting its neuromorphic technology, BrainChip holds defensible IP in a rapidly growing market.
The bear case remains equally compelling. Customer cash inflows totalled just US$0.4 million. The recent raise at A$0.175 represented a 10.3% discount, and shareholders have absorbed significant dilution. Competition from Intel, Qualcomm, and emerging rivals makes success far from guaranteed.
Our take: BrainChip is speculative, suited only for high-risk investors with a three-to-five-year horizon. At current levels, the stock may be pricing in execution risk that could prove overdone if the AKD1500 ramp delivers. Conservative investors should wait for meaningful revenue traction. The Q3 2026 production milestone is the key catalyst to watch.
Imo the price per chip isn't the real game. Royalties are. Depends what products they go into and what cut we get. We only have one so far to go on. 15% for first product and option of 10% for second product. Now if we say we get volume production and 10% royalty, the real money is in the royalties. Depending on what people paid for their shares it may take 12 - 24 months to break even, (barring a huge announcement). The real money may take to 2030, so that is my time frame. Only an opinion. Happy to hear objective opinions.
www.executivebiz.com
Hi B.
it will remain very cagey about what pricing guidence it releases into the general info sphere .I agree. I saw this as probably the strongest quarterly report I have seen in the 8 or 9 years I've been holding. Revenue stable, expenses down a little and confirmed orders.BrainChip (ASX:BRN) falls 6% Despite Major 10,000-Chip Defence Order- Is It a Buy?
BrainChip (ASX:BRN) shares hit 52-week lows despite an initial 10,000-chip order from Parsons and the AKD1500 production ramp. Is the market missing an edge AI buying opportunity or is the US$4.3M cash burn a red flag?
BrainChip (ASX:BRN) Falls 6% Despite Defence Deals and AKD1500 Production Ramp- Is This a Buying Opportunity?
BrainChip Slips Despite Defence Orders and AKD1500 Ramp
BrainChip Holdings (ASX: BRN) dropped around 6% on Thursday despite releasing what appears to be its strongest quarterly update in years. The neuromorphic AI chip maker reported improved cash flows, a strengthened balance sheet, and meaningful progress on defence contracts, yet the market pushed shares toward 52-week lows near 16 cents.
For investors watching the edge AI space, this disconnect raises a critical question: Is the market missing something, or does the selloff reflect legitimate concerns about a company still burning cash with minimal revenue? We believe the answer lies somewhere in between.
BrainChip’s Defence Push Gains Traction With Parsons Partnership
The most significant development from the December quarter was the advancement of a multi-year partnership with Blue Ridge Envisioneering, a subsidiary of NYSE-listed Parsons Corporation. This deal includes an initial order of 10,000 chips over the agreement term and establishes a supply framework for high-volume defence deployments.
Parsons is a Fortune 500 defence contractor with deep ties to the US military and intelligence agencies. Their commitment to BrainChip’s technology validates the Akida platform’s relevance in defence applications where low power and edge processing are essential.
The company also secured an order from Nex Novus for medical sensing applications. However, these early wins remain small relative to BrainChip’s A$350 million market capitalisation. Early commercial validation is encouraging, but the path to meaningful revenue remains in its infancy.
AKD1500 Production Begins- What This Means for Revenue
Perhaps the most important milestone this quarter was the commencement of volume production for the AKD1500 edge AI co-processor. This chip delivers 800 giga operations per second while consuming under 300 milliwatts, a performance that positions it well for battery-powered devices and heat-constrained environments.
The AKD1500 integrates with x86, ARM, and RISC-V systems, providing compatibility across a wide range of applications. With volume production now underway, BrainChip expects to commence shipping production-grade parts in Q3 2026, marking a critical transition from R&D to commercial scaling.
In our view, this transition from development to manufacturing separates genuine commercial potential from perpetual R&D spending. If BrainChip converts its design wins into recurring chip sales over the next 12 to 18 months, the investment case strengthens considerably. Until that revenue materialises, the stock remains speculative.
The Investor’s Takeaway
The bull case centres on defence tailwinds and BrainChip’s improved financial position. The company bolstered liquidity to US$31.7 million following an A$35 million placement, providing runway for commercialisation. Operating outflows narrowed to US$4.3 million for the quarter. With 61 patents protecting its neuromorphic technology, BrainChip holds defensible IP in a rapidly growing market.
The bear case remains equally compelling. Customer cash inflows totalled just US$0.4 million. The recent raise at A$0.175 represented a 10.3% discount, and shareholders have absorbed significant dilution. Competition from Intel, Qualcomm, and emerging rivals makes success far from guaranteed.
Our take: BrainChip is speculative, suited only for high-risk investors with a three-to-five-year horizon. At current levels, the stock may be pricing in execution risk that could prove overdone if the AKD1500 ramp delivers. Conservative investors should wait for meaningful revenue traction. The Q3 2026 production milestone is the key catalyst to watch.
Thanks for the clarification Frangipani, by patent definition North Pole is different to AKIDA. Perhaps AKIDA for Symphony may well be a better fit. Hence the trial.I don’t think so.
Different use cases, I’d say.
FYI: IBM are half-way through a three-year $48.2 million (!) cost reimbursement contract with AFRL with regard to NorthPole hardware and software.
IBM Secures Air Force Contract for NorthPole Chip Software & Hardware – ExecutiveBiz
IBM will provide the U.S. Air Force with a new chip prototype for test and demonstration under a $48.2M contract.
AI/ML North Pole Platform Technology Design & Validation (FA875024CB040)
Definitive Contract FA875024CB040 worth up to $48.2M was awarded to International Business Machines Corporation on 5/30/24 by the OUSD Research & Engineering (FA8750-24-C-B040)www.highergov.com
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Scientific paper published on 20 November 2025:
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Does that look to you as if NorthPole were out of favour?
I do agree with you on that, though.
Far too technical for me, but maybe others will find below posts by Kevin D. Johnson useful:
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Great post 7 fur7. Tells it exactly how it is.There are many people who believe Sean has to go, and that opinion should be acknowledged. But what I keep asking myself is whether those people have actually thought through what comes next. Do they really think the next CEO will start shaking contracts out of thin air from day one?
Do they also believe that capable CEOs for a company working with such a specialized and new technology are growing on trees? In this segment, there may be a handful of people worldwide who could realistically move the needle — and those individuals are in high demand. The cost to attract and retain them is high.
It’s also not like these people are lining up and knocking on our door. Most of them already have experience in profitable corporations. Or are we seriously suggesting hiring someone who just finished their computer science degree?
This isn’t like replacing a bakery clerk.
On top of that, a newly negotiated CEO contract would likely not satisfy the same people who are now calling for Sean’s removal — especially if the new CEO cannot show tangible results within two weeks.
In my opinion, replacing the CEO would set the company back 1–2 years. Internally, the gears would slow down or stop. Nobody knows what that would mean for ongoing development and the roadmap.
These are all factors that should be considered.
Personally, I believe Sean and the whole team are doing a lot behind the scenes, and the pressure on them (especially to Sean) is extremely high. Our own naivety and misjudgment of the market should not be reframed as a CEO failure. Our expectations were wrong — and perhaps still are.
Just my opinion.
Good luck to everyone.
I’m staying in. Holding strong.
All or nothing
