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Brainchip share price rockets 30% higher on NASA program collaboration

Rocket launching into space
Image source: Getty Images

The Brainchip Holdings Ltd (ASX: BRN) share price has been on fire again on Wednesday morning.

At the time of writing the artificial intelligence technology company’s shares are up 30% to a 52-week high of 40.5 cents.

Why is the Brainchip share price rocketing higher?

Investors have been scrambling to buy Brainchip’s shares this morning after it announced a collaboration with VORAGO Technologies.

VORAGO Technologies is a privately held, high technology company based in Texas with over 15 years of experience in providing radiation-hardened and extreme-temperature solutions for the Hi-reliability marketplace.

According to the release, it is recognised as one of Inc 5000’s Fastest Growing Private Companies in America.

VORAGO’s patented HARDSIL technology uses cost-effective high-volume manufacturing to harden any commercially designed semiconductor component for extreme environment operation. It has created a number of solutions throughout Aerospace, Defense, and Industrial applications.

What is the collaboration?

Management advised that the collaboration is intended to support a Phase I NASA program for a neuromorphic processor that meets spaceflight requirements.

The agreement includes payments that are intended to offset the its expenses to support partner needs.

BrainChip’s CEO, Louis DiNardo, commented: “We are both excited and proud to participate in this Phase I program with VORAGO Technologies and support NASA’s desire to leverage neuromorphic computing in spaceflight applications. The combination of benefits from the Akida neuromorphic processor and a radiation-hardened process brings significant new capabilities to spaceflight and aerospace applications.”

The company notes that its Akida neuromorphic processor is uniquely suited for spaceflight and aerospace applications. The device is a complete neural processor and does not require an external CPU, memory or Deep Learning Accelerator.

This is important as reducing component count, size, and power consumption are paramount concerns in spaceflight and aerospace applications.

Bernd Lienhard, VORAGO CEO, commented: “We are thrilled and honored to partner with BrainChip to harness the radiation hardening capabilities of our patented HARDSIL technology for the Phase I program with NASA. Our ongoing mission of creating components with increased availability and unmatched solutions in aerospace and defense applications paired with the Akida neuromorphic processor will create unprecedented standards moving forward in the industry.”

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Returns as of 6th October 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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