Business Overview of Accelerate, Inc.

(2) New Business Related

As part of the "New Business Related" segment, the company provides solutions and development support consulting, IP sales, and sales of middleware software "AXIP" series targeting machine learning/AI and blockchain technology (Web3.0) areas. The various technologies and know-how of the layer, such as algorithm development and sales related to LSI development by the company, are differentiation factors, and the strategy is to expand new businesses by responding to diverse customer needs. The sales volume in both areas is still small and positioned as a preceding investment stage. In addition, G-LSIs for embedded devices such as medical equipment and industrial equipment are also included in "New Business Related".

(a) Machine Learning/AI Area

In the machine learning/AI area, we deploy a proprietary deep learning framework for edge inference, "ailia SDK," as the core. The features of "ailia SDK" include the ability to immediately utilize over 300 AI models including the latest models, the ability to achieve the world's highest level of inference processing speed on the edge side by actively utilizing the GPU, and compatibility with cross-platforms that can flexibly respond to the execution environment desired by customers. In particular, being compatible with cross-platforms is a highly evaluated point as a user-friendly framework for developers.

The construction of AI systems requires both learning (deep learning) and inference processes, but there are few AI operators in Japan with core technologies in the inference field, and many cases combine their own deep learning frameworks with engines of overseas major platforms such as Google and Microsoft. The company's inference framework has a high-speed processing performance equivalent to that of the major overseas companies and is a differentiation factor from other AI development operators. In addition, having its own inference framework is also a strength in that it can flexibly and quickly make design changes to meet the various needs of customers.

As a business model, we are progressing with the provision of solution packages based on "ailia SDK," contract development and introduction support, and acquisition of royalty income. In the future, we will focus on expanding sales centered on the AI-based DX application "ailia DX Insight," which was released in beta in February 2024, aiming to increase revenue through royalty income and the expansion of our products (SaaS business).

"ailia DX Insight" is a DX application that enables anyone to easily import data from companies or teams into ChatGPT in a secure environment by packageing AI. In addition to ChatGPT, it is equipped with various AI functions such as highly accurate speech recognition and minutes creation using AI, image search from text, and OCR, and plans to further expand its functions in the future. The strengths of "ailia DX" are the ability to establish a highly secure environment and the ability to process at high speed by utilizing the knowledge and technology accumulated through the development of "ailia SDK." In particular, the latter is a factor that directly contributes to productivity improvement and a differentiation factor that other companies providing similar solutions do not have. With regard to the construction of a highly secure environment, in the past, it was necessary to upload all the text in the company to the server to use ChatGPT, but through "ailia DX," it has become possible to process the information offline within the company and upload only a part of the text found in the search to the server. It is also possible to use a local LLM (large language model), and if the user prepares a local LLM server in-house, it is possible to establish a completely secure environment. Therefore, demand is expected from companies and departments that require a high level of information security measures.

As use cases, it is assumed that it will be utilized in the sales department, customer support center, research and development department, etc. In the sales department, for example, it is possible to automatically respond to user inquiries using the same app and automatically create minutes of meetings using AI voice recognition capabilities. In addition, in the research and development department, significant improvement in productivity can be expected by using it for surveys and translation work.

b) Blockchain technology (Web3.0)

The company has core technology for blockchain construction, hardware technology that supports transaction platforms, and security technology (encryption technology by algorithm). The company aims to promote the development of various solutions based on blockchain technology through collaboration with companies that develop businesses in the same field or have expertise.

c) Middleware products (AXIP)

In middleware products, the company mainly develops and sells the "AXIP" series of middleware that focuses on image and audio compression technology mainly for the gaming market. As products, it has a lineup of movie middleware "H2MD" *1, super resolution "GRADIA", sound middleware "C-FA" that realizes low CPU load and low delay, HDR compatible ultra high compression movie middleware "LESIA", the file packing middleware "VUCKET" *3, and casino / arcade game movie middleware "AXVC". The company enhances added value by selling industry-leading middleware as a multifunctional package, and uses a business model that earns fixed or revenue-linked royalties for each company or application.

*1 A video codec library that can play multiple videos at the same time and control transparent layers (overlaying of videos), etc., with characteristics including low CPU load.

*2 Super resolution is a technology that corrects the outline part that usually becomes jagged when characters and drawings displayed on a display are enlarged to a smooth and natural state.

*3 VUCKET is an automatic execution type compression file software that not only has a function to combine large files such as images and audio into one, but also supports file corruption checks, encryption, etc.

(Written by FISCO guest analyst, Jo Sato)