Netherlands-based NXP Semiconductors is acquiring US firm Kinara, a specialist in neural processing units (NPUs). NPUs enable edge AI applications, including multi-modal generative AI models.

The acquisition will be an all-cash transaction valued at $307 million and is expected to close in the first half of 2025, subject to customary closing conditions, including regulatory clearances.

Kinara’s NPUs provide energy-efficient AI across a range of neural networks, including both conventional and generative AI. The acquisition will expand NXP’s AI capabilities platforms from TinyML to generative AI. It will bring discrete NPUs and AI software to NXP’s portfolio of processors, connectivity, security, and analogue solutions.

The two companies plan to create tighter integration of solutions to deliver scalable AI platforms for a variety of industrial and automotive AI inference needs.

Kinara’s NPUs, including the Ara-1 and Ara-2, are employed in AI applications in vision, voice, gesture, and a variety of other generative AI-powered multi-modal implementations. Their architecture enables mapping of the inference graphs for efficient execution on Kinara’s programmable proprietary neural processing units for maximising edge AI performance. This programmability allows adaptability as AI algorithms continue to evolve from CNNs to generative AI and new approaches such as agentic AI in the future.

Ara-1 is a first generation discrete NPU capable of advanced AI inferencing at the edge. Ara-2, capable of up to 40 TOPS (Tera Operations Per Second), a second generation NPU, is optimised for achieving system-level high performance for generative AI. The Ara-1 and Ara-2 NPUs can be integrated with embedded systems to enhance their AI capabilities, including upgrading existing in-field systems.

Kinara also provides a software development kit enabling customers to optimise AI model performance and streamline the deployment. Kinara’s AI software portfolio includes model libraries and model optimisation tools, which will be integrated into NXP’s eIQ AI/ML software development environment to enable customers to quickly and easily create end-to-end AI systems.

“The industrial market is going through a transformation, with new innovations like generative AI helping to deliver major improvements in efficiency, sustainability, safety and predictability, and in many instances, unlock new use cases and functionality,” said Rafael Sotomayor, executive vice president and general manager, Secure Connected Edge at NXP. “Adding Kinara’s AI capabilities to our broad intelligent edge portfolio creates a scalable platform for new classes of AI-powered systems. Together, we can help our customers simplify complexity and accelerate time to market as they create transformative AI systems.”