China’s AI chip designer Vastai bags $50m in series A round

Vastai Technologies, a Chinese AI chip designer, announced that it has raised US$50 million in a series A round co-led by video-sharing platform Kuaishou, Redpoint China Ventures, and 5Y Capital.

SAIF Partners China, along with existing investors ZhenFund, Sirius Capital, and Glory Ventures, also participated in the round.

Photo credit: Phuchit Aunmuang / 123RF

Founded in December 2018, Vastai focuses on developing AI chips for the optimization of computer vision and video processing.

The new funds will go toward scaling the production of its major AI chip products, talent hiring, as well as customer acquisition around the world.

The company was co-founded by John Qian and Louis Zhang. Qian, who is the firm’s CEO, has 25 years of working experience in chip design and worked as the senior director at Advanced Micro Devices (AMD), a US-based semiconductor company. Meanwhile, Zhang – Vastai’s current chief technology officer – worked at AMD for over 14 years.

The Shanghai-based startup has research and development centers in Beijing and the greater Toronto area.

In China, the AI chips market was estimated at US$1.7 billion in 2019. Currently at an early stage of industrialization, the AI market is expected to grow by 50% year on year in three years due to 5G and the internet of things.

Similar players in the space include Yunyinggu, which secured US$45.6 million in a series D round led by Sequoia Capital China last month, as well as Hong Kong-listed Semiconductor Manufacturing International Corporation (SMIC).