Japanese startup Preferred Networks is ramping up investment in customised artificial intelligence chips, seeking to ensure access to critical hardware as advances in generative AI spark a global investment boom. The company, whose investors include automaker Toyota and robot maker Fanuc, began developing its first generation AI chip in 2016 to power its supercomputers. We knew we needed to optimise energy consumption and minimise procurement risk, which could make it difficult to sustain our business,” Preferred Networks co-founder and CEO Toru Nishikawa said in an interview. Companies around the world are scrambling to secure AI chips amid excitement over the potential of the technology with Amazon and Microsoft among firms designing chips in-house. Preferred Networks has completed the design of its second generation AI chip, which is being manufactured by TSMC and will power its new supercomputer.

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