Blue Cloud Softech signs $150M deal with Israeli firm to co-develop Edge AI chips in India

Blue Cloud Softech Solutions Limited (BCSSL), an AI-driven enterprise and cybersecurity solutions provider, has entered into an agreement valued at approximately USD 150 million with an Israel-based semiconductor design company specializing in edge computing architectures and AI accelerator designs to co-develop Edge AI chips in India.

This includes revenue sharing with the Israel technology partner for hardware design transfer and intellectual property rights, work on technology integration, product development, and manufacturing setup in India.Under the terms of this five-year technology ownership transfer (ToT), the Israel company will provide the core hardware architecture and reference design. The Hyderabad-based company will own and develop the entire software stack, including system firmware, AI middleware, and application frameworks to design semiconductor systems that will power AIoT (Artificial Intelligence of Things) and industrial automation applications.

“By merging Israel’s globally-recognized excellence in chip design with BCSSL’s leadership in AI software, we are creating a world-class edgeAI semiconductor platform that will serve industrial, defense, and critical infrastructure needs across continents,” explained Janaki Yarlagadda, Chairman, Blue Cloud Softech Solutions Limited.The edgeAI semiconductor platform is touted to deliver high-performance edge computing for industrial and defense-grade environments, ensuring real-time intelligence and secure data processing closer to the source for real-time decisions, reduced latency, and bandwidth optimization while ensuring data sovereignty at the network edge.

According to the company, this partnership will fulfill the company’s existing USD 15 million collaboration with Byte Eclipse for Edge AI chip integration in the Oil & Gas sector and address other similar industrial projects currently in the pipeline across defense, energy, and industrial AIoT domains.