AI chip startups have had a promising bouy of investment in the past few years but according to a recent report from Omdia, this could be about to change.
Omdia’s Top AI Hardware Startups Market Radar found that venture capitalists had invested over $6 billion USD in the top 25 AI chip startups since 2018. However, due to a global chip shortage and inventory restraints, it seems the good times might not last.
The chip shortage is a global problem caused by multiple factors, including the pandemic and a surge in demand for consumer electronics. This has led to increased competition between companies that rely on chips and components, meaning that AI chip startups could be under more pressure when it comes to securing the materials they need.
The impact of the shortage is expected to reach into 2021 and possibly even 2022, meaning that AI chip startups could be facing a difficult year. It’s important for businesses to prepare for possible disruptions to supply chains and be prepared for increases in pricing for materials.
For those businesses that are already set up to use components from multiple sources, it could be worth diversifying the sources of their materials to ensure that there is less disruption from the chip shortage.
Overall, the global chip shortage is set to have an effect on AI chip startups this year. It’s important for businesses to be aware of the impact and to plan ahead to ensure that their operations and supply chains can cope with the increased demand for components.