EnSilica, a semiconductor company, saw a 9% increase in shares upon announcing a new partnership with Oriole Networks.
- The agreement will involve designing photonics controller chips to enhance data centre efficiency.
- Oriole Networks, backed by Ian Hogarth, aims to revolutionise AI data processing.
- This collaboration is expected to reduce energy use and improve network speed.
- EnSilica faces financial challenges but shows optimism with new contracts and refinancing.
EnSilica, a key player in the semiconductor industry, experienced a notable rise in its share value by 9% as markets opened on Monday. This surge followed the announcement of a strategic partnership with Oriole Networks, a University College London spinout. The contract focuses on designing and supplying photonics controller chips for Oriole’s optical network switch products. The goal is to enhance the efficiency of data centres.
Oriole Networks is working to transform high-performance computing and data centres by significantly lowering energy consumption while boosting speed. James Regan, the Chief Executive Officer of Oriole, expressed enthusiasm, stating that their optical switching technology could potentially “revolutionise high-performance computing and data centres.” The technology is particularly aimed at advancing machine learning applications.
This collaboration comes on the heels of a significant £16.9 million investment into Oriole Networks, led by Plural, an investment group managed by government AI advisor Ian Hogarth. Oriole Networks focuses on using photonics technology to develop faster and more sustainable generative AI. The company uses light to create integrated networks of AI chips that promise to train large language models significantly faster and with much less power than current methods.
Oriole Networks raised $35 million in total funding this year, bolstered by an earlier £10 million round in March. Founded in 2023, the firm claims its technology can train AI models 100 times faster, presenting a promising solution to one of the significant challenges in scaling generative AI.
Despite the promising deal with Oriole Networks, EnSilica faces financial uncertainties. Last week, the Oxford-based company warned that without continued funding from its existing customers, as well as additional external financing, it might struggle to operate beyond the next twelve months. The company highlighted the potential need for external financing if there were delays in customer payments.
However, EnSilica’s board remains optimistic about its future prospects. They have secured new contracts and refinanced debt agreements worth £6 million on more favourable terms. The company also raised over £5 million from shareholders earlier this year. EnSilica reported revenues of £25.3 million for the year ending in May, showing a significant increase from the previous year despite posting a small loss this year compared to a profitable year in 2023.
EnSilica’s new partnership with Oriole Networks marks a significant step towards advancing AI technologies and improving financial stability amidst challenges.
