AI Data Acceleration Startup Pliops Faces Significant Losses in Merger with Kalray

The Israeli startup Pliops, known for developing acceleration solutions for AI and storage servers in data centers, has experienced a substantial decrease in value following its merger with Kalray, a French provider of advanced data processing solutions. In August 2022, Pliops raised $100 million at a valuation exceeding $650 million. However, shareholders will now only receive approximately $100 million worth of Kalray shares as part of the merger agreement.

Founded in 2017, Pliops has garnered over $200 million in funding from prominent investors such as Koch Disruptive Technologies, State of Mind Ventures Momentum, Intel Capital, Viola Ventures, and others. Despite being valued at $650-700 million during its Series D funding round, the merger terms stipulate that Kalray shareholders will retain 65% ownership of the combined entity, leaving Pliops shareholders with up to 35% of ownership, potentially increasing to 40% based on certain milestones.

Currently, Kalray holds a market value of around $150 million, and new shares are expected to be issued to Pliops shareholders. Consequently, the merged company’s value is projected to be approximately 240 million euros, with Pliops accounting for about $100 million, reflecting a significant drop of over 80% from its previous valuation.

Eyal Waldman, founder of Mellanox and Chairman of Waldo Holdings, expressed optimism about the merger’s potential to expand business opportunities for both companies. Similarly, Kalray’s CEO, Eric Baissus, highlighted the strategic benefits of combining forces to become a leading global provider of data acceleration solutions for storage and AI GPUs.

Pliops, led by CEO Ido Bukspan since June, was established by Uri Beitler, Aryeh Mergi, and Moshe Twitto. The company’s innovative technology addresses the challenges posed by increasing data volumes and sluggish computational performance, offering a streamlined approach to data processing and storage management in data centers. With approximately 120 employees, Pliops continues to drive advancements in the data acceleration industry.

Related articles:
• Ido Bukspan appointed new CEO of Pliops
• Pliops raises $100 million to make data centers run faster and more efficiently
• After departing from Mellanox, Eyal Waldman to join board of Israeli startup Pliops