Microchip signs deal to buy Hailo, the edge AI chipmaker once valued above $1B

Microchip Technology signed a definitive agreement to acquire Hailo, and the deal is expected to complete this quarter. The price was not disclosed, though Calcalist says industry estimates put it at a fraction of earlier valuations. Hailo was founded in 2017 and raised about $340M from backers including the Zisapel family, OurCrowd, Alfred Akirov and Delek Automotive, reaching a valuation above $1B. The company then faced liquidity pressure, emergency loans, layoffs and a failed SPAC merger at a valuation under $500M. Delek Automotive, which provided emergency financing, has said it will write off most of its investment. Hailo's Hailo-8, Hailo-10 and Hailo-15 processors run vision and generative models on devices such as robots, drones, cameras and industrial equipment. For AI builders and investors, the sale shows that edge AI silicon needs scale and sustained funding, and that large valuations can compress sharply in a sale. Chip startups should plan for long capital cycles and consider strategic partners with distribution early.