Japan backs AI chip startup EdgeCortix to power next-gen military tech

The Tokyo-based AI chip startup, along with other major tech players, is pivoting toward defense technology. The goal is to strengthen Japan’s semiconductor industry with defence-focused tech.

EdgeCortix has won a contract tied to the US Department of Defense and secured government subsidies of $21 million to develop energy-efficient AI chiplets. They should be commercialization in 2027.

The contract may help revenue more than double this year, founder Sakyasingha Dasgupta said to Bloomberg.

The products are made to help robots make quick decisions and ease Japan’s labor shortages. They’ll be mass-produced at TSMC’s plant in Japan, with extra government subsidies on top of the $27 million already given to develop next-gen communication chips.

Funding from an Economy Ministry-backed agency shows Japan’s growing focus on dual-use technologies. Companies like Mitsubishi Electric and startups such as Terra Labo are developing satellite constellations to support missile tracking as part of the Defense Ministry’s buildup program, while the defense forces are increasingly using AI to improve surveillance systems.

EdgeCortix, having raised about $37 million in funding so far, is creating chiplets with programmable architecture that enable robots to process data locally, without relying on the cloud, according to Dasgupta.

He explained in an interview that this approach conserves power in areas requiring hyper-customization, like healthcare, and reduces costly data transmission.

“Our energy-efficient AI technologies can be used in solutions across domains – from land-based systems to aerial platforms to space,” Dasgupta said to Bloomberg.

“This helps advance edge AI solutions for national and global security.”