Japanese AI Firm Preferred Networks Targets IPO for Custom-Built Chips
Preferred Networks, a Japanese AI company, is planning an initial public offering (IPO) to fund mass production of its MN-Core processor line. The company claims that its custom-built chips can run generative AI workloads up to ten times faster than conventional GPUs.
The MN-Core L Series processors use 3D-stacked architecture to boost memory bandwidth, which is the bottleneck for generative AI inference. Preferred Networks has been developing its MN-Core project since 2016 and launched the MN-Core 2 in 2024. The next target is the MN-Core L1000 processor.
The company plans to partner with Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung for chip production, rather than building its own fabs. In December 2024, Preferred Networks closed a funding round of ¥19 billion ($126M) for developing and producing the MN-Core L1000 and supporting other infrastructure projects.
Preferred Networks has strategic investors including Toyota, SBI Group, Fanuc, and NTT, and currently employs around 450 people. The company's leadership believes that an IPO window is around 3 to 5 years out from March 2025, which puts the listing somewhere in the 2028-2030 range.