Brainchip Licenses Akida 2 IP to EDGEAI, Targeting Future Royalties
By Editorial Team
BrainChip Holdings has recently announced a global, non-exclusive licensing agreement with EDGEAI for its Akida 2 neuromorphic IP. This agreement grants EDGEAI access to Akida IP, integration documentation, development tools, software components, hardware support materials, and engineering assistance for design, verification, and integration.
The compensation structure for BrainChip includes milestone-based payments tied to the staged delivery of technical assets and services. Notably, ongoing royalties will be paid quarterly after EDGEAI’s commercial shipments begin, calculated as a percentage of the product sales price.
The license will remain active as long as EDGEAI uses the Akida IP, with EDGEAI having the option to terminate the agreement with one month’s written notice. While the financial impact is currently unquantifiable, BrainChip anticipates significant royalties over time based on EDGEAI’s product volume.
Annual Report Shows Production Progress
BrainChip’s 2025 Annual Report highlighted operational advancements, including the movement of its AKD1500 to tape-out and volume production, with production silicon expected in Q3 2026. The company’s revenue surged by 374% to US$1.89 million in 2025 from US$398,011 in 2024, while the net loss after tax decreased to US$20.47 million in 2025 from US$24.43 million in the previous year.
Post year-end, BrainChip initiated the AKD2500 custom silicon development project, with prototype silicon for the AKD2500 anticipated in Q3 2026, further advancing its next-generation technology roadmap.
Financial Position Strengthened
BrainChip’s financial runway significantly improved in 2025, with cash and cash equivalents rising to US$31.71 million at year-end 2025 from US$20.00 million in 2024. A substantial A$37 million equity raise in November 2025, comprising a A$35 million underwritten placement and a A$2 million Share Purchase Plan, further bolstered the company’s capital position. Additionally, the LDA Put Option Agreement renewal maintains a total funding commitment of A$140 million, with a minimum drawdown of A$20 million due by 30 June 2026.
Commercial Ecosystem Expansion
BrainChip highlighted expanded partnerships and engagements in key sectors such as aerospace and defense, wearable technology, and industrial IoT connectivity. These collaborations aim to integrate Akida technology into emerging edge AI markets. The company also focuses on developer enablement, launching the MetaTF 2.13 developer hub and Developer Akida Cloud to provide developers with hardware-free access to Akida 2.
Previous commercial engagements include a US$1.8 million contract with Raytheon for neuromorphic radar signal processing, secured in December 2024 under the US Air Force Research Laboratory (AFRL) SBIR program.
Outlook and Risks
The EDGEAI licensing agreement offers BrainChip a potential new revenue stream through royalties, contingent on EDGEAI’s product success. However, the company’s reliance on external funding and the risks associated with commercializing new technology are key considerations for investors. Delays in product development timing and customer adoption, as outlined in its annual report, remain significant risks.
