- Signature of a contract for the development and supply of acceleration cards based on Kalray DPUs with a major player listed on NASDAQ;
- The contract includes the technical and financial terms and conditions for a project established in 3 stages representing a commercial potential of more than one hundred million euros in total;
- Confirmation of performance in 2023 before a pre-series commitment;
- This contract validates both the relevance of Kalray’s technology, its ability to sign large-scale contracts and the change in dimension initiated by the company.
Grenoble – France, November 14, 2022 – Kalray (Euronext Growth Paris: ALKAL), leader in hardware and software technologies dedicated to the management and intensive processing of data from the Cloud to the Edge, announces that it has signed a major contract with a world leader in the field of high-tech, listed on NASDAQ, in accordance with the negotiations announced recently .
Éric Baissus, Chairman of the Management Board of Kalray, declares: “Signing this contract is a major milestone for Kalray. It is the result of nearly 18 months of in-depth evaluation by our client, both of our technology, which has thus demonstrated its relevance compared to the most advanced alternatives in the industry, of the quality of our teams, I would like to thank you for the remarkable work that has been done throughout these discussions, and for our ability, as a strategic partner, to offer all the guarantees required by signing a contract of such magnitude with a major international player. This contract is further proof of the change in dimension initiated by our company and an additional step towards becoming one of the world leaders in our market. »
A MAJOR CONTRACT, WHICH CONFIRMS KALRAY’S ABILITY TO CONVINCE MARKET LEADERS
This major contract was signed with an American player listed on the NASDAQ, a major player in the industry which, in 2021, generated several tens of billions of dollars in turnover for a market capitalization of more than one hundred billion. of dollars.
The contract covers the development and supply of acceleration boards based on Kalray’s DPU processors, acceleration boards on which the customer intends to build the next generation of its products and services. This contract includes the technical, commercial and financial terms of the agreement and represents a commercial potential of several tens of millions of euros per year for the company. The signing of this contract thus demonstrates Kalray’s ability to convince the most demanding players in the market and to sign contracts with a very high revenue generation potential.
AND CONFIRMS THE RELEVANCE OF KALRAY’S TECHNOLOGY AND ITS BUSINESS MODEL
The fundamental criterion in the customer’s choice was the ability of Kalray’s technology and its acceleration card offer to process the customer’s data with the best performance/price and performance/consumption ratio. The tests carried out have thus made it possible to evaluate a gain of a factor of 3 to 5 for the Kalray solution compared to the competition, which represents a potential saving for the customer of several hundred million dollars over the life of the project. . Added to this cost/performance advantage is the ability of Kalray’s solutions to be very easily programmed and to be able to manage a wide variety of data processing in parallel, which traditional alternatives, such as GPUs or FPGAs do not allow.
Kalray’s ability to support such a large contract comes from its so-called “fabless” business model. Like other very fast growing companies like NVIDIA, Kalray does not have a factory. Kalray relies on industrial partners such as TSMC, the world’s largest semiconductor manufacturer, or Wistron, one of the world’s largest card and server manufacturers, to manufacture its hardware solutions without having to invest in a tool. of production.
A CONTRACT IN 3 CLEARLY DEFINED STEPS
The first stage started with the signature of the contract and covers the manufacture of a very high performance acceleration board including 4 MPPA® DPU processors from Kalray and the support of the customer’s development teams for the development of their next generation of product . The client has already committed to paying $1 million to Kalray to cover the different phases of this stage, which should be completed in the second half of 2023.
The second step will consist for the customer, once the performance of the acceleration card has been confirmed, to launch the pre-series production of its new generation of product, which will result in first orders of cards for several million euros. euros.
The third stage will be volume production, which should represent orders for several thousand cards per year, i.e. revenues of several tens of millions of euros per year, over a period which should extend over a minimum of 5 years and which should start from 2025.
This signature is part of Kalray’s strategy of working with major players looking for a unique technology for very large projects. The company is currently in discussions with several players with the same profile and believes that this first major contract should be a catalyst for signing new contracts with this type of first-tier client and with all its prospects in general.
Kalray (Euronext Growth Paris: ALKAL) is a leader in hardware and software technologies dedicated to the management and intensive processing of data from Cloud to Edge. Kalray offers a complete range of products and solutions to develop smarter, more efficient and more energy-efficient applications and infrastructures.
Kalray’s offering includes patented DPU (Data Processing Unit) processors, derived from a unique technology, acceleration cards, as well as innovative software solutions for data storage and management. Used separately or in combination, Kalray’s high-performance solutions enable customers to improve data center efficiency or design the best solutions in high-growth industries such as AI, media and entertainment, life sciences, scientific research, edge computing, automotive, and more.
A spin-off from the CEA founded in 2008, Kalray’s industrial and financial investors include Alliance Venture (Renault-Nissan-Mitsubishi), NXP Semiconductors and Bpifrance. Kalray is technology, expertise, passion to always offer more: more for a smart world, more for the planet, more for our customers and developers. www.kalrayinc.com
See press release of September 21, 2022