Why the BrainChip (ASX:BRN) share price is charging higher

The BrainChip Holdings Ltd (ASX:BRN) share price is charging higher on Tuesday after the release of an announcement…

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The BrainChip Holdings Ltd (ASX: BRN) share price has been a positive performer on Tuesday morning.

At the time of writing, the artificial intelligence technology company's shares are up over 4% to 37 cents.

Why is the BrainChip share price charging higher today?

Investors have been buying the company's shares this morning after it provided an update on the evaluation boards for its Akida Neuromorphic System-on-Chip (NSoC).

According to the release, the company began shipping the evaluation boards in November.

Management notes that these boards complement its Akida Development Environment (ADE) for Early Access Partners (EAP) that have developed Akida compatible networks.

It explained that the ADE is a robust development environment that allows potential customers to design a neural network as a Convolutional Neural Network (CNN). They can then utilise the ADE workflow to convert the network to an event-based CNN or develop a native spiking neural network (SNN).

By implementing an event-based CNN, users can significantly reduce power consumption by processing only non-zero activations and take advantage of the sparsity in most data.

Management commentary.

BrainChip's CEO, Louis DiNardo, commented, "The Akida NSoC has proven to provide significant power savings and is the complete integration of a neural network design. Akida introduces new and powerful features to the high-growth AI Edge market."

"True AI Edge learning does not exist with current AI solutions and our ability to provide this and other features while significantly reducing both power consumption, size and the Bill-of-Materials (BOM) has attracted the attention of leading suppliers in the Smart Home, Smart Transportation and Smart City markets," he added.

The chief executive believes the company's technology can provide solutions in the healthcare sector.

Mr DiNardo explained: "We believe that these capabilities also will provide new solutions in Smart Healthcare applications that serve our mission of supporting Beneficial AI applications and improve the human condition globally in terms of diagnosis of infectious diseases, cancers and a wide array of challenging global health concerns."

"We are excited about our technology and the potential to impact many industries including healthcare and energy conservation which are clearly a global concern," he concluded.

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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