Preferred Networks, a Tokyo-based AI firm founded in 2014, is planning an IPO to finance the mass production of its proprietary MN-Core processors. The company claims these chips, which utilize 3D-stacked architecture, can perform generative AI inference up to 10 times faster than standard GPUs.
The company is currently valued at approximately $2 billion and employs about 450 people. Its strategic investors include Toyota, SBI Group, Fanuc, and NTT. In December 2024, the firm secured ¥19 billion, or roughly $126 million, to support the development of the MN-Core L1000 processor.
Preferred Networks does not operate its own manufacturing facilities. Instead, it collaborates with TSMC for 12nm and 7nm processes and with Samsung for 2nm chip production. The company also expanded its operations in March 2026 by establishing a joint venture named GMO Preferred Security.
Management estimates the IPO window will open between 2028 and 2030, roughly 3 to 5 years after March 2025. The timing of the public offering depends on the company's ability to scale the production of its processor line, which has been in development since 2016.
