AI chip startup Wave Computing, which has a subsidiary based on the MIPS architecture, reached a restructuring deal with creditor (and major investor) Tallwood Technology Partners and plans to re-start operations in January. It had previously raised a total of $203m with its Series E funding round led by hedge fund Oakmont.
This followed an auction last week seeking the highest or otherwise best offer to restructure or purchase the Company's business, and, after improving its initial restructuring bid by nearly $10 million to $67m, Tallwood, which was an investor in the D-series funding round, was identified as the successful bidder.
The restructuring, which started in April 2020, should allow Wave to refocus its business around the continued commercialization of the various MIPS architectures. The IP however appears to sit with another company connected with Tallwood that has a complex ownership.
However Wave is looking to bring MIPS IP back to the market, which indicates that other deals with the IP holder are progressing.
"We are pleased to find a partner in Tallwood that will be able to further develop Wave's landmark MIPS architectures," said Larry Perkins, Chief Restructuring Officer of Wave Computing. "We hope Tallwood's stewardship will allow Wave's groundbreaking technology to continue to transform the processor landscape and benefit a range of new customers. I'm thankful for the entire team at Wave, who have worked so hard throughout the Chapter 11 process to put the Company on the path to future success."