BRN Discussion Ongoing
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charmander
Regular
If I were younger and more hip I'd sa..
Nah screw it I'll just say it
The last couple days here being a Brainchip holder have been a vibe
Well done everyone!
Nah screw it I'll just say it
The last couple days here being a Brainchip holder have been a vibe
Well done everyone!
Proga
Regular
Proga
Regular
In one of Sean's first interviews, must have been a podcast because I tried looking for it on YouTube but can't find, he spoke about the revenue model being IP license and royalties. He said the royalties would be on a sliding scale depending on how many applications were produced using our IP. He spoke in cents not dollars. Even mentioned 10c I think which frightened me. In The Wall Street Resource interview (13.50 minute mark) he said the board sales or the system sales was just to get the word out there and he doesn't expect much revenue.I agree with @Proga. Our revenue model is going to be similar to Arm. For some context, in the year ended March 2022 Arm made US 9.2c per chip sold with Arm IP. This includes licensing as well as royalties.
ARM Holdings revenues surge as it prepares for IPO
ARM Holdings plc (LSE:ARM) posted strong growth in revenues and profits as it prepared to float in New York or London. With a record 29.2bn chips shipped...www.proactiveinvestors.co.uk
Recent broker reports have indicated royalties of 2% - 15% for Akida based on the chip sale value of US$25. This would be a sliding scale based on volume of units, so realistically we would be sitting in the 2% - 5% range when we’re talking about millions of units per year sold or US50c - US$1.25 per chip.
When you factor in a PE ratio of 50 to 100 times earnings on these numbers for our share price then we’re still talking massive numbers. 2m Merc EV’s per year with 70 chips @ US 50c/chip = US$70m/yr or approx. A$100m/yr. With 85% margin and a PE of 50 this is $2.50 per share. Do the same with 10 or more other customers and it really starts to add up.
But I think $10 per chip royalties is a tad optimistic. You’d be multiplying these numbers by 20 which I don’t think is realistic.
Happy to be proven wrong though….
Links to the broker reports mentioning royalties here….
I haven't heard Sean speak actual dollars and cents again so he might have been a little excited being one of his first interviews as CEO and let it slip.
@DingoBorat sorry mate I tried adding in your reply as well but didn't work apparently.
butcherano
Regular
Cheers @Proga. I don’t actually ever recall the company stating the royalties in $’s (or c’s) per chip. Can’t bring myself to believe that it would be as low as 10c though….unless it was per node maybe?!…and even that seems really low….
jtardif999
Regular
I agree, but also consider that with the release of Akida2000 we go to a 5 year lead, and as we become a dominant brand we will be able to charge a premium for the IP. AIMO.I agree with @Proga. Our revenue model is going to be similar to Arm. For some context, in the year ended March 2022 Arm made US 9.2c per chip sold with Arm IP. This includes licensing as well as royalties.
ARM Holdings revenues surge as it prepares for IPO
ARM Holdings plc (LSE:ARM) posted strong growth in revenues and profits as it prepared to float in New York or London. With a record 29.2bn chips shipped...www.proactiveinvestors.co.uk
Recent broker reports have indicated royalties of 2% - 15% for Akida based on the chip sale value of US$25. This would be a sliding scale based on volume of units, so realistically we would be sitting in the 2% - 5% range when we’re talking about millions of units per year sold or US50c - US$1.25 per chip.
When you factor in a PE ratio of 50 to 100 times earnings on these numbers for our share price then we’re still talking massive numbers. 2m Merc EV’s per year with 70 chips @ US 50c/chip = US$70m/yr or approx. A$100m/yr. With 85% margin and a PE of 50 this is $2.50 per share. Do the same with 10 or more other customers and it really starts to add up.
But I think $10 per chip royalties is a tad optimistic. You’d be multiplying these numbers by 20 which I don’t think is realistic.
Happy to be proven wrong though….
Links to the broker reports mentioning royalties here….
Neuromorphia
fact collector
this could be the interview you speak of...Interview with Brainchip (ASX:BRN) CEO Sean Hehir
https://thestockexchange.com.au/threads/brn-discussion-2022.1/post-73288
Interview with Brainchip (ASX:BRN) CEO Sean Hehir
BrainChip (ASX:BRN) CEO, Sean Hehir, spoke to us about BRN's partnership with ARM and the many opportunities BRN is seeing in the market.
stocksdownunder.com
Marc: Right. Okay. Last question and it’s probably the simplest one for you. Looking at deals with, you know, likes of MegaChips, just for our viewers, can you just briefly explain what revenue looks like and at what stage that comes in?
Sean: Sure, sure. At its simplest level, our revenue model is very much a licensing or an IP model. So, when you sell to a MegaChips or others, they pay, you know, a significant amount of money for that license for a period of time. And they either have a single design or multi-design depending on what they decide to buy. But, you know, it’s a significant purchase for those companies to buy. Then you go through a period…when they produce their products, you get royalties. But I like to describe how that royalty stream looks like. Obviously, there’s a delay. Somebody buys a license. Then they’ve gotta develop their products so maybe a year, two, maybe even three sometimes before the products come.
But when their products start hitting the market, we collect a royalty on each individual product. And so, our modeling, the way we do it is it’s a factor, not a percentage. So, if somebody paid, you know…let’s just say they paid $1 for a license. Obviously, it’s a lot more. We’d expect $3 or $4 or $5 in royalties, not 50 cents. So that’s a way to look at it if you’re trying to model our revenue. As licensees come on more and more, there’ll be a delay but then, quite frankly, the royalties with no cogs come through, and that’s the beauty of this model.
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TechGirl
Founding Member
this could be the interview you speak of
https://thestockexchange.com.au/threads/brn-discussion-2022.1/post-73288
Interview with Brainchip (ASX:BRN) CEO Sean Hehir
BrainChip (ASX:BRN) CEO, Sean Hehir, spoke to us about BRN's partnership with ARM and the many opportunities BRN is seeing in the market.
Marc: Right. Okay. Last question and it’s probably the simplest one for you. Looking at deals with, you know, likes of MegaChips, just for our viewers, can you just briefly explain what revenue looks like and at what stage that comes in?
Sean: Sure, sure. At its simplest level, our revenue model is very much a licensing or an IP model. So, when you sell to a MegaChips or others, they pay, you know, a significant amount of money for that license for a period of time. And they either have a single design or multi-design depending on what they decide to buy. But, you know, it’s a significant purchase for those companies to buy. Then you go through a period…when they produce their products, you get royalties. But I like to describe how that royalty stream looks like. Obviously, there’s a delay. Somebody buys a license. Then they’ve gotta develop their products so maybe a year, two, maybe even three sometimes before the products come.
But when their products start hitting the market, we collect a royalty on each individual product. And so, our modeling, the way we do it is it’s a factor, not a percentage. So, if somebody paid, you know…let’s just say they paid $1 for a license. Obviously, it’s a lot more. We’d expect $3 or $4 or $5 in royalties, not 50 cents. So that’s a way to look at it if you’re trying to model our revenue. As licensees come on more and more, there’ll be a delay but then, quite frankly, the royalties with no cogs come through, and that’s the beauty of this model.
Hi Neuromorphia,
Thanks for that.
I also remember in one of Jerome's recent podcasts he talked about how some client's will pay a fix amount or maybe even a percentage royalty & then he mentioned how some other customers would pay us a percentage of the sale price of the finished product.
Does anyone else remember this?
wilzy123
Founding Member
What is your point?
butcherano
Regular
Yeah but that’s not an absolute value per chip…they’re just arbitrary numbers. I interpreted that as Sean saying that the annual royalties are going to be multiples of the amount that a customer pays for the license. ie. If Megachips paid $2m upfront for the license, then royalties for one of their customers that incorporate Akida into a device would give Brainchip royalties of $6m or $8m or $10m using those numbers…..and not a fraction of the license value….this could be the interview you speak of
https://thestockexchange.com.au/threads/brn-discussion-2022.1/post-73288
Interview with Brainchip (ASX:BRN) CEO Sean Hehir
BrainChip (ASX:BRN) CEO, Sean Hehir, spoke to us about BRN's partnership with ARM and the many opportunities BRN is seeing in the market.
Marc: Right. Okay. Last question and it’s probably the simplest one for you. Looking at deals with, you know, likes of MegaChips, just for our viewers, can you just briefly explain what revenue looks like and at what stage that comes in?
Sean: Sure, sure. At its simplest level, our revenue model is very much a licensing or an IP model. So, when you sell to a MegaChips or others, they pay, you know, a significant amount of money for that license for a period of time. And they either have a single design or multi-design depending on what they decide to buy. But, you know, it’s a significant purchase for those companies to buy. Then you go through a period…when they produce their products, you get royalties. But I like to describe how that royalty stream looks like. Obviously, there’s a delay. Somebody buys a license. Then they’ve gotta develop their products so maybe a year, two, maybe even three sometimes before the products come.
But when their products start hitting the market, we collect a royalty on each individual product. And so, our modeling, the way we do it is it’s a factor, not a percentage. So, if somebody paid, you know…let’s just say they paid $1 for a license. Obviously, it’s a lot more. We’d expect $3 or $4 or $5 in royalties, not 50 cents. So that’s a way to look at it if you’re trying to model our revenue. As licensees come on more and more, there’ll be a delay but then, quite frankly, the royalties with no cogs come through, and that’s the beauty of this model.
Proga
Regular
Get the IP in mobile phones and it might be. They sell in the billions ie sliding scale. The beauty about Akida is it will be in thousands of applications with sales of the applications in the 10's of billions.
A chip has many components. The why I think about it is how much does a chip cost and how much are we part of the chip in dollar terms? Obviously, other components of a chip cost more. We're only providing IP which does provide very high margins even at say 50c.
I wish I could find the interview to check. I think it was with one of the tech news sites in February. 2-3 months after he joined.
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TechGirl
Founding Member
Proga
Regular
Whatever you want it to be.
wilzy123
Founding Member
I literally did not understand whether you were trying to make a point (and if so, what it was....) OR ask a question OR something else?
buena suerte :-)
BOB Bank of Brainchip
Might have already been posted ... but great to see something from Anil
29/06/2022
Inspired by human vision, Prophesee’s technology uses a patented sensor design and AI algorithms that mimic the eye and brain to reveal what was invisible until now using standard frame-based technology. Prophesee’s computer vision systems open new potential in areas such as autonomous vehicles, industrial automation, IoT, security and surveillance, and AR/VR.
Brainchip’s first-to-market neuromorphic processor, Akida, mimics the human brain to analyze only essential sensor inputs at the point of acquisition, processing data with unparalleled efficiency, precision, and economy of energy. Keeping AI/ML local to the chip, independent of the cloud, also dramatically reduces latency.
“We’ve successfully ported the data from Prophesee’s neuromorphic-based camera sensor to process inference on Akida with impressive performance,” said Anil Mankar, Co-Founder and CDO of Brainchip. “This combination of intelligent vision sensors with Akida’s ability to process data with unparalleled efficiency, precision and economy of energy at the point of acquisition truly advances state-of-the-art AI enablement and offers manufacturers a ready-to-implement solution.”
“By combining our Metavision solution with Akida-based IP, we are better able to deliver a complete high-performance and ultra-low power solution to OEMs looking to leverage edge-based visual technologies as part of their product offerings,” said Luca Verre, CEO and co-founder of Prophesee.
Email: Lcoello@brainchip.com
Website: www.brainchip.ai
Read more about BrainChip Holdings Ltd.
29/06/2022
Brainchip agrees new technological partnership
Laguna Hills, Ca (USA)
Brainchip Holdings has entered into a new technology partnership with Prophesee, the inventor of some of the world’s most advanced neuromorphic vision systems. The aim of the new partnership is to deliver next-generation platforms for OEMs looking to integrate event-based vision systems with high levels of AI performance coupled with ultra-low power technologies.Inspired by human vision, Prophesee’s technology uses a patented sensor design and AI algorithms that mimic the eye and brain to reveal what was invisible until now using standard frame-based technology. Prophesee’s computer vision systems open new potential in areas such as autonomous vehicles, industrial automation, IoT, security and surveillance, and AR/VR.
Brainchip’s first-to-market neuromorphic processor, Akida, mimics the human brain to analyze only essential sensor inputs at the point of acquisition, processing data with unparalleled efficiency, precision, and economy of energy. Keeping AI/ML local to the chip, independent of the cloud, also dramatically reduces latency.
“We’ve successfully ported the data from Prophesee’s neuromorphic-based camera sensor to process inference on Akida with impressive performance,” said Anil Mankar, Co-Founder and CDO of Brainchip. “This combination of intelligent vision sensors with Akida’s ability to process data with unparalleled efficiency, precision and economy of energy at the point of acquisition truly advances state-of-the-art AI enablement and offers manufacturers a ready-to-implement solution.”
“By combining our Metavision solution with Akida-based IP, we are better able to deliver a complete high-performance and ultra-low power solution to OEMs looking to leverage edge-based visual technologies as part of their product offerings,” said Luca Verre, CEO and co-founder of Prophesee.
Email: Lcoello@brainchip.com
Website: www.brainchip.ai
Read more about BrainChip Holdings Ltd.
Secret sauce with chocolate topping!
Brilliant Brilliant Brilliant Article
Edge Impulse Releases Deployment Support for BrainChip Akida Neuromorphic IP
/PRNewswire/ -- Edge Impulse, the leading platform for enabling ML at the edge, and BrainChip, the leading provider of neuromorphic AI IP technology, announced...www.prnewswire.com
- Edge Impulse Releases Deployment Support for BrainChip Akida Neuromorphic IP
NEWS PROVIDED BY
Edge Impulse
Aug 03, 2022, 08:00 ET
The tech firms' collaboration augments brain-mimicking Spiking Neural Networks.
SAN JOSE, Calif., Aug. 3, 2022 /PRNewswire/ -- Edge Impulse, the leading platform for enabling ML at the edge, and BrainChip, the leading provider of neuromorphic AI IPtechnology, announced support for deploying Edge Impulse projects on the BrainChip MetaTF platform.
Edge Impulse enables developers to rapidly build enterprise-grade ML algorithms, trained on real sensor data, in a low to no code environment. These trained algorithms can now be quantized, optimized and converted to Spiking Neural Networks (SNN), which are compatible and can be deployed with BrainChip Akida™ devices. This capability is available for new and existing Edge Impulse projects by using the BrainChip MetaTF model deployment block integrated on the platform. This deployment block enables free-tier developers and enterprise developer users to create and validate neuromorphic models for real-world use-cases and deploy on BrainChip Akida development kits.
A reference project targeting image classification is publicly available as an Edge Impulse public project, giving experts a head start with developing algorithms for the next generation of neuromorphic computing. Machine Learning experts will be able to create Akida-compatible models using the Edge Impulse expert mode within the learning block and using the BrainChip MetaTF model deployment block to use Tensorflow based models, and quantize them to complete or mixed low-precision bits, from 1 to 4 bits. It also allows the implementation of quantization-aware training to help retain the performance.
Finally, the optimized model can be converted to Akida-based SNN networks and experts will be able to download them to deploy on BrainChip Akida development kits. Experts also see performance metrics, Akida model summary, and configuration data.
"We're extremely delighted to support BrainChip's proliferation of their Akida technology," said Jan Jongboom, CTO at Edge Impulse. "The combination of BrainChip's advanced technology and Edge Impulse's industry-leading developer experience gives users an easy and seamless way for deploying ML at the edge using efficient and essential SNNs algorithms that helps the advancement of solving real-world problems of all types."
Edge Impulse is widely used to rapidly develop, deploy, and maintain ML algorithms across the industry where security, low-power, and remote deployment needs require intelligence at the edge. BrainChip's Akida IP promises to massively increase the processing capability and efficiency of such applications. Edge Impulse continues to improve access to the BrainChip Akida technology and has started to integrate BrainChip's MetaTF Software Development Environment so that those new to ML and Akida can more easily incorporate the benefits of the technology in their projects.
"Being the commercial leader in edge AI on-chip learning and neuromorphic AI IPavailability, it is critical for BrainChip to establish our ecosystem with key partnerships and technology leaders such as Edge Impulse," says Anil Mankar, Chief Development Officer at BrainChip.
"Working together, both companies are creating an advantage for the ML community. This is only the beginning of how we see our Akida technology expanding into the ecosystem."
About Edge Impulse
Edge Impulse is the leading machine learning platform, enabling all enterprises to build smarter edge products. Its technology empowers developers to bring more ML products to market faster and helps enterprise teams rapidly develop industry-specific solutions in weeks instead of years. The Edge Impulse platform provides powerful automation and low-code capabilities to make it easier to build valuable datasets and develop advanced ML with streaming data. With over 40,000 developers, and partnerships with the top silicon vendors, Edge Impulse offers a seamless integration experience to validate and deploy with confidence across the largest hardware ecosystem. To learn more, visit edgeimpulse.com.
About BrainChip Inc
BrainChip is the worldwide leader in edge AI on-chip processing and learning. The company's first-to-market neuromorphic processor, AkidaTM, mimics the human brain to analyze only essential sensor inputs at the point of acquisition, processing data with unparalleled efficiency, precision, and economy of energy. Keeping machine learning local to the chip, independent of the cloud, also dramatically reduces latency while improving privacy and data security. In enabling effective edge compute to be universally deployable across real world applications such as connected cars, consumer electronics, and industrial IoT, BrainChip is proving that on-chip AI, close to the sensor, is the future, for its customers' products, as well as the planet. Explore the benefits of Essential AI at brainchip.com.
SOURCE Edge Impulse
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