AI chip startup Mythic rises from the ashes with $13M, new CEO

Mythic, an AI chip startup that final November reportedly ran out of capital, rose from the ashes in the present day with an surprising injection of recent funds.

Mythic this morning introduced that it closed a $13 million financing spherical led by present buyers Atreides Administration, DCVC and Lux Capital alongside new buyers Catapult Ventures and Hermann Hauser Funding. Whereas the tranche is a fraction of the startup’s earlier elevate ($70 million), Mythic claims that the tranche will allow it to carry its “next-generation” product — an improved energy-efficient AI processor — to market.

“Whereas financial circumstances are difficult proper now, this new funding will assist Mythic give attention to its know-how providing, go-to-market technique and buyer acquisition,” Dave Fick, Mythic’s newly appointed CEO, informed ClassyBuzz in an electronic mail interview.

Co-founded by Fick and Mike Henry at the College of Michigan below the title Isocline, Mythic developed chip tech that shops analog values on flash transistors. Whereas digital processors “pause” to swap information out and in of devoted reminiscence, Mythic’s {hardware} can carry out calculations in parallel with out stopping, resulting in efficiency and effectivity positive aspects, notably for AI functions — or so the firm claims, a minimum of.


Mythic initially labored on tasks for the U.S. Air Pressure via its Small Enterprise Innovation Analysis (SBIR) program, specializing in laptop imaginative and prescient for high-altitude drones and GPS sign acquisition. As soon as the contracts wrapped up, the startup determined to pursue the enterprise capital route, elevating over $170 million throughout a number of rounds from buyers, together with Hewlett Packard Enterprise and BlackRock.

With its first industrial chip, M1076, Mythic doubled down on laptop imaginative and prescient use circumstances, constructing a system that may assist detect small objects from faraway distances in fewer than 33 milliseconds. It’s maybe these capabilities that attracted Mythic’s largest buyer thus far, Lockheed Martin, whose company arm, Lockheed Martin Ventures, turned a significant investor in the startup.

So what went fallacious? Properly, Mythic was competing in a really crowded discipline. Dozens of startups had been — and are — growing chips to run AI effectively at the edge, together with, Axelera, Flex Logix, NeuReality, EnCharge, Hailo and Kneron. However funding is drying up. According to The Register, international VC fairness for semiconductor startups in 2022 declined 46% to $7.8 billion, reflecting elevated scrutiny for the capital-intensive companies.

Picture Credit: Mythic

Mythic wasn’t the just one impacted by the bust. Final yr, AI chipmaker Graphcore, which reportedly had its valuation slashed by $1 billion after a deal with Microsoft fell via, mentioned that it was planning job cuts because of the “extraordinarily difficult” macroeconomic setting. In the meantime, Habana Labs, the Intel-owned AI chip firm, laid off an estimated 10% of its workforce.

To claw again to stability, Fick — who stepped up as Mythic’s CEO from CTO after Henry, who was CEO, left to pursue different pursuits — prioritized effectivity. For instance, Mythic now leverages extra improvement companions and off-the-shelf elements than it did beforehand, slicing prices and (with luck) lowering the time to market.

Fick asserts that the restructuring has the additional benefit of constructing Mythic’s R&D “extra nimble” because it prepares to launch its next-gen chip, the M2000.

“Given the new macroeconomic setting, we anticipate many startups will need to take an analogous strategy, particularly for techniques firms which must ship many elements past their core know-how,” Fick added. “However a bonus of Mythic’s analog computing strategy is that we will use extra mature course of nodes. These have extra provide chain availability than bleeding-edge nodes and are additionally way more cost-effective.”

Past price slicing, Mythic revamped its go-to-market technique, returning to its roots with a “renewed focus” on protection (and to a lesser extent public security, business and shopper verticals), in line with Fick. He wouldn’t elaborate. However presumably, meaning chasing after extra prospects with authorities contracts, like Lockheed.

“Cloud computing is usually not obtainable on the battlefield, making a strict edge computing setting. Superior laptop imaginative and prescient is being utilized in lots of locations, together with massive and small drones, land-based autonomous techniques, radar, augmented actuality headsets and extra,” Fick mentioned. “As the M2000 reduces the dimension, weight, energy, and price to deploy high-performance laptop imaginative and prescient, these applied sciences may be utilized in additional functions.”

Critics may deride Mythic’s pivot to protection as opportunistic, however there’s no denying that there’s a wellspring of capital there. As PitchBook famous in a latest report, after years of shunning investments in army and security-related tech startups, VCs have begun elevating their profile in the sector as the U.S. makes an attempt to achieve an higher hand in opposition to threats from adversaries, together with China and Russia. In 2022, there was $7 billion invested in VC-backed U.S. aerospace and protection firms via October 13, placing the sector on monitor to surpass 2021’s report deal worth of $7.6 billion.

As Matt Ocko, managing accomplice at DCVC, put it in slightly apocalyptic language: “Mythic’s processor delivers information heart GPU efficiency into the dimension, energy, and price of sensible long-run-time edge techniques that may defend America’s colleges and public locations from violence and terror, and our allied nations’ troops on the battlefield. Mythic’s know-how will shut the hole between what AI researchers publish and what techniques makers truly deploy, and delivers revolutionary capabilities for homeland protection and nationwide safety.”


Parsing the hype, buyers are passionate about Mythic’s new defense-forward course — a minimum of for now. Time will inform whether or not it was the proper one.

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