SiFive, a leading provider of intellectual property (IP) cores, is projected to earn between $240 million and $280 million in licensing revenue and new lifetime contracts in 2024, according to confidential documents seen by Bloomberg. This forecast has led industry experts to speculate that the company may secure another major partnership, potentially with Google, involving the supply of processor core designs for its tensor processing units (TPUs).
While specific details about the potential partnership remain undisclosed, Bloomberg suggests that SiFive is pinning high hopes on a “second-generation chip for artificial intelligence servers.” This development could serve as a significant driver of revenue for the IP provider. Although SiFive has the capability to license its RISC-V cores to various companies, industry observers from The Register suggest that SiFive is likely to license its X390 core to Google for use in their next-generation TPUs, which will be tailored for AI and machine learning workloads.
SiFive’s existing X280 general-purpose core is already used by Google’s current TPU to feed data to the company’s matrix multiplication units. The X390 core, on the other hand, is specifically designed to enhance AI-related tasks. However, it is important to note that neither SiFive nor Google have officially confirmed this rumored partnership.
One compelling reason for Google to continue utilizing SiFive cores in their future AI system-on-chips (SoCs) is to ensure compatibility with existing AI SoCs. By maintaining backward compatibility, Google can streamline the integration of new technologies while minimizing disruptions to their current infrastructure.
As the popularity of the RISC-V instruction set architecture grows in datacenters, there is also a possibility that SiFive may license its cores to other developers of AI and edge AI accelerators. Therefore, it is not entirely definitive that Google is the sole potential licensee of SiFive’s technology.
In 2023, SiFive reported revenue of $38.2 million, primarily derived from licensing and royalty deals. However, due to the company’s relatively high operating expenses of $148.9 million, it incurred substantial losses during that year, despite securing $186 million in lifetime deals.
Looking ahead to 2024, SiFive has set ambitious revenue targets. The company expects to earn $16 million in the first quarter, $43 million in the second, $103 million in the third, and $79 million in the fourth. These revenue projections encompass both lifetime royalties and licensing fees. Additionally, SiFive has already secured $233 million in total future revenue from royalty contracts by the end of 2023.
FAQs
1. What is SiFive’s main business?
SiFive is a leading provider of intellectual property (IP) cores, specifically focusing on the RISC-V instruction set architecture.
2. Is SiFive expected to partner with Google?
While it is strongly suggested that SiFive may secure a major partnership with Google, no official confirmation has been made by either company.
3. What are the potential applications of SiFive’s X390 core?
The X390 core developed by SiFive is tailored for artificial intelligence (AI) and machine learning workloads. It is expected to enhance the performance of AI-related tasks.
(Source: Bloomberg)
1. What is SiFive’s main business?
SiFive’s main business is providing intellectual property (IP) cores, with a specific focus on the RISC-V instruction set architecture.
2. Is SiFive expected to partner with Google?
There are indications that SiFive may secure a major partnership with Google, particularly in relation to the supply of processor core designs for Google’s tensor processing units (TPUs). However, no official confirmation has been made by either company.
3. What are the potential applications of SiFive’s X390 core?
SiFive’s X390 core is designed for artificial intelligence (AI) and machine learning workloads. It is expected to enhance the performance of AI-related tasks.
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