Japan startup Preferred Networks designs own AI chips to beat bottleneck

TOKYO: Japanese startup Preferred Networks is ramping up investment in customised artificial intelligence chips, seeking to ensure access to critical hardware as advances in generative AI spark a global investment boom.

The company, whose investors include automaker Toyota and robot maker Fanuc, began developing its first generation AI chip in 2016 to power its supercomputers.

“We knew we needed to optimise energy consumption and minimise procurement risk, which could make it difficult to sustain our business,” Preferred Networks co-founder and CEO Toru Nishikawa said in an interview.