Proposed funding would bolster U.S. semiconductor capabilities in AI and space communications with Akash’s Diamond Cooling technology.

Oakland, CA – November 13, 2024 – Akash Systems has signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce under the CHIPS and Science Act to receive over $68 million in direct funding. This includes $18.2 million in proposed direct funding and $50 million in combined federal and California state tax credits. This proposed funding would provide Akash Systems, a pioneer of Diamond Cooling semiconductor technologies, significant support for its operational ramp-up in AI, Data Centers, Space, and Defense markets.

Akash Launches AI Server Product with Diamond Cooling

By reducing a GPU’s hot spot temperature by just 10-20 degrees Celsius, Akash can cause the data center operator with hundreds of Servers to save millions of dollars in cooling costs.  Temperature reductions can also cause GPUs to reach their intrinsic speed limit without thermal throttling.

With Diamond Cooled servers, Akash is setting new global benchmarks in AI server performance, catering to the growing demands of data centers and high-performance Compute applications.

In the rapidly growing industry of artificial intelligence, efficient thermal management is critical to supporting the extreme demands of AI while mitigating its effects on the globe’s limited energy supply.  Akash Systems’ newly launched Diamond Cooled servers address this need, utilizing the extreme thermal properties of synthetic diamond—the most thermally conductive material in the known world —to reduce GPU temperatures, and thus the cost of cooling down Servers and the data centers they occupy. This innovation empowers already liquid-cooled Servers to operate at even higher clock cycles while also reducing thermal throttling - a well-known phenomenon wherein the server’s operating system reduces workloads on the GPU in order to reduce GPU Hot Spot temperatures.

Transforming Space Communications

Beyond terrestrial applications, Akash Systems is revolutionizing satellite communications with its Diamond-Cooled Satellite Radios. The company’s GaN-on-Diamond technology is pivotal in producing satellite radios and power amplifiers that offer:

• ‍5-10x Faster Data Rates: Enhanced communication speeds for satellite operations.
• ‍Increased Reliability: Robust performance in the challenging conditions of space.‍
• 50% Small Form Factor: Reduced size enables lower costs and deployment flexibility.

These advancements are instrumental in improving global connectivity and supporting critical space missions.

“Integrating Akash Systems’ GaN-on-Diamond radios into our satellites has been transformative for Pixxel. The diamond cooling technology ensures exceptional thermal management, allowing our payloads to operate at peak performance even in the harsh conditions of space. This advancement has enabled us to deliver high-resolution hyperspectral imagery with unprecedented efficiency.”
- Awais Ahmed, Co-founder and CEO of Pixxel

Recognition and Future Endeavors

The proposed CHIPS Act funding would support Akash Systems’ vision, innovation, and potential to drive transformation in technology broadly. In particular, this proposed investment would accelerate the development and deployment of Akash’s Diamond Cooling technology across various sectors, including AI, data centers, space communications, automotive, clean energy, cellular communications, and defense.

“This proposed funding is an important milestone for Akash Systems and for innovative US technology,” said Felix Ejeckam, co-founder and CEO. “As a U.S. company developing next-generation semiconductor technology, this validates our vision and strategy, helping us to deliver cutting-edge solutions that address thermal challenges in today’s high-performance Compute and communication systems. We’re excited to drive this advancement forward for the industry and for the future of American technology.”

Akash has previously received Seed and Series A funding from leading venture capital firms, including Founders Fund, Khosla Ventures, and Kearny Jackson, underscoring strong industry confidence in its groundbreaking technologies and future growth potential.

“Akash Systems has not only developed proprietary materials and technologies that are advancing important industries like AI and Space but is also contributing towards the strengthening of critical supply chains in the United States.”
- Delian Asparouhov, Partner at Founders Fund

Commitment to Sustainability and US Jobs

Akash has prioritized responsible resource use in its CHIPS-funded facility, aiming to source 100% of its electricity from renewable sources by 2030. The company will also implement advanced water recirculation and reuse systems to minimize water discharge and consumption, ensuring a sustainable approach to manufacturing.

Akash has also committed to workforce development for its new facility by partnering with Alameda Building Trades under a project labor agreement, ensuring union support through IUE-CWA, and collaborating with local colleges to recruit, train, and hire West Oakland residents, including those from underserved communities.

“CWA is proud to partner with high-road employers like Akash Systems to ensure that as we rebuild the semiconductor industry in the United States, workers and our communities benefit from this historic public investment. Creating good union jobs will mean that production workers can have family-supporting careers in America's semiconductor industry," said Communications Workers of America President Claude Cummings Jr.

About Akash Systems

Akash Systems is an Oakland, CA-based, venture-backed, small business developing and manufacturing diamond-based semiconductors for the Space, Communications, EVs & Autonomous vehicles, AI, and Clean/Renewable Energy markets. Akash is the pioneer of Gallium Nitride-on-Diamond technology, the first new semiconductor wafer to enter the market in over 20 years. The new technology whisks heat away from an electronic device’s core faster than any other in the world. Akash’s satellite radios will be launched into space for the first time in the Summer of 2024. To learn more, visit Akash Systems.

Media Contact:‍

Caylin Lo

Marketing and PR, Akash Systems

caylin.lo@akashsystems.com