Preferred Networks plans IPO to mass-produce AI chips

Japanese AI company Preferred Networks is planning an initial public offering (IPO) to fund the mass production of its MN-Core processor line. The company aims to compete with Nvidia’s dominance in the semiconductor market by offering chips that can reportedly run generative AI workloads up to ten times faster than conventional GPUs.

Preferred Networks utilizes a 3D-stacked architecture designed to increase memory bandwidth, addressing a primary bottleneck in generative AI inference. The company is targeting the production of the MN-Core L1000 processor and plans to launch its IPO between 2028 and 2030, depending on production scaling.

To manufacture its chips, the company is partnering with TSMC for 12nm and 7nm processes and Samsung for 2nm production. Preferred Networks, which has a valuation of approximately $2 billion, is supported by strategic investors including Toyota, SBI Group, Fanuc, and NTT. In December 2024, the firm secured 19 billion yen (roughly $126 million) to support the development of the MN-Core L1000.