butcherano
Regular
G’day @IndepthDiver . Great post. But I actually landed on only 2 real drivers behind Mercedes revealing themselves.Why did Mercedes announce they were working with us in January this year? I'm sure others on here have thought about this. They had no pressure to announce this and by not announcing this (at least until it was already inside commercial vehicles, if ever) they would have had potential to greatly extend any market lead. They could have simply said they were using advanced AI technologies to reduce power draw without mentioning Brainchip.
Here's what I think:
-The CEO Sean started in November. He has two main focusses: extending the market lead and getting the word out about Brainchip.
-Before January there hadn't been new customer announcements for a while. No customers wanted to say they were working with Brainchip as the tech is a key differentiator. The suddenly there were two, namely Mercedes and ISL. I don't think this is a coincidence.
-Sean is very limited about what he can talk about in his NDAs. This makes it difficult to promote Brainchip
-In Sean's first few public appearances he would likely have wanted to project a vibe of a highly successful, top tier technology. As mentioned above the NDAs keep getting in the way so he needed a way around this.
-Maintaining strong investor interest is crucial as a higher share price means higher valuation, greater international a credibility, and an increased ability to do things like strategic acquisitions. Again NDAs have been limiting this and affecting some investor decisions.
-In Sean's most recent presentation he said he would be negotiating with other companies to have the ability to display their logos. This indicates they won't necessarily say what they're working on with the customer, even just the logo would have a big impact. ISL was probably negotiated with NASA as a non-lethal defense application (non-lethal being critical for Brainchip's image). Using Mercedes as an example, they've probably only negotiated the ability to talk about the voice recognition system (a fairly basic / common use case). We probably won't hear about other things they are working on, especially if it's something big like Level 4 or 5 autonomous driving.
-Negotiating with a company means that whatever the outcome, it should work in both companies favour. For Mercedes to agree to announce Brainchip, they likely would have got something in return. This could be something like more engineering support, a discount on licensing fees, lower royalty fees, or the earliest access to AKD2000 etc.
-This desire to negotiate the ability to display EAP logos is probably being strongly driven by Sean. Brainchip are at a stage where they need to carefully balance increased investor interest with the revenue stream and the cash drain from increased hires.
-I think Sean said something in the Q&A about how he will only announce material contracts if the customer allows it. I think he'll try to push for a few more public announcements this year as it aligns strongly with his strategy. Valeo is a strong contender for this with their Lidar IMO. Early announcements will help project his image as talented and successful CEO. Though he may try space these announcements out to ensure regular news flow to investors and to maintain interest but without impacting on negotiations too heavily.
Also of interest is how in the recent interview Sean confirmed Megachips / Renesas are being used to hide which companies are using Brainchip IP (my words). This confirms what FF had been suggesting for quite some time.
Also worth mentioning is how the CEO is less forthcoming about NDAs than others in the company. I think this will become more of the norm in future Brainchip presentations, including those by other presenters going forward as Sean will push for this. He needs customers to trust he runs a tight ship and seems to be setting a high bar.
Pure speculation, DYOR
The first is based on the assumption that it’s well known that we’re working with a number of other automotive companies. And Mercedes simply wanted to ensure that they become renowned as the innovators and the rest as just followers.
And the second hinges on the competitive advantage and they’re trying to throw other competitors off the scent (that aren’t woking with Brainchip) to give the impression that Akida is only being used for voice recognition or “Hey Mercedes“…and not the plethora of other applications that we know Akida can and most likely is doing in the EQXX.