Preferred Networks, a Tokyo-based AI startup that develops AI models and semiconductors, plans to consider an initial public offering over the next few years to help fund mass production of its custom chips, CEO Daisuke Okanohara said.

The company plans to deliver samples of its MN-Core L inference chips in the first half of 2027.

It is targeting commercial sales to corporate customers in Japan and overseas by December 2027 and aims to become profitable within three years, Okanohara said.

Okanohara said securing manufacturing capacity is a hurdle because the chips will use a legacy-node process at TSMC.

This comes as mature-node foundry prices are set to rise and TSMC has cut 15% at one mature-node fab.

Preferred Networks is also developing industrial large language models through Noetra with Japanese companies including SoftBank Corp., Sony Group Corp., and Honda Motor Co.

🔗 Source: Bloomberg

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