GSI Technology Defines Edge Strategy to Capture Growth in $2.7 Billion Drone Market

Rhea-AI Summary

GSI Technology (Nasdaq: GSIT) on Nov 6, 2025 defined an edge strategy for its Gemini-II APU targeting drone, defense, robotics and mobile markets where power and latency matter.

Key claims: Gemini-II delivers GPU-class performance at 15W, customers report up to 3x faster first-response, and a Cornell study found the APU uses >98% less energy and can cut retrieval processing time by up to 80%. GSI highlighted a recent $50 million equity raise and cited a drone market projected at $2.7 billion by 2030 and a global edge AI processor market projected at $9.6 billion by 2030.

Positive

• $50 million equity raise announced
• Gemini-II operates at 15W for edge AI workloads
• Customers report up to 3x faster first-response times in POC engagements
• Cornell study: >98% lower energy versus GPUs for APU architecture
• Cornell study: retrieval tasks up to 80% faster

Negative

• Data center market is described as saturated with large, well-capitalized incumbents
• Current results are described as proof-of-concept engagements, not disclosed commercial contracts

Insights

Edge AI Strategy Analyst

GSI targets drone and defense edge markets with a low‑power APU after a $50 million equity raise.

GSI positions the Gemini‑II APU as a low‑power alternative to data‑center GPUs by emphasising $50 million in fresh equity and device power of 15W. The company frames the product for real‑time drone and defense workloads and cites proof‑of‑concept results with up to three times faster first‑response times versus alternatives.

Dependencies and risks include adoption by drone and defense customers and validation of the claimed performance at scale; the company also notes crowded data‑center competition and therefore focuses on edge segments. Key watch items are proof‑of‑concept conversion to contracts, integration into drone systems, and follow‑through on the next‑generation "Plato" roadmap over the medium term through 2030.

Defense and Embedded Systems Analyst

Gemini‑II targets mission‑sensitive, power‑constrained platforms with claimed orders‑of‑magnitude energy savings and faster response.

The announcement stresses suitability for drones, military vehicles, and robotics by citing 15W operating power and a Cornell study reporting > 98% lower energy consumption and up to 80% shorter total processing time for retrieval tasks. These metrics, if reproducible in deployed systems, materially affect endurance and real‑time responsiveness in constrained platforms.

Critical near‑term items to monitor include conversion of proof‑of‑concepts into procurement, independent replication of the Cornell results in system‑level tests, and any disclosed timelines or milestones for Plato. Expect meaningful signals within one to two years as integration and field testing progress.

Gemini-II delivers ultra-low power and industry-leading time-to-first-token performance, ideal for real-time drone workloads

SUNNYVALE, Calif., Nov. 06, 2025 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (Nasdaq: GSIT), the inventor of the Associative Processing Unit (APU), a paradigm shift in artificial intelligence (AI) and high-performance compute (HPC) processing providing true compute-in-memory (CIM) technology, today announced its defined edge strategy for the Gemini-II APU. GSI Technology’s focus on high-growth AI edge processor markets where its architecture delivers a decisive advantage in performance and power efficiency, beginning with drones, represents a segment projected to reach $2.7 billion by 2030¹.

The APU architecture is applicable to both edge and data center inference. However, the data center market is saturated with large, well-capitalized incumbents, where power consumption approaches 2kW per GPU. The edge needs an entirely different compute architecture. Gemini-II delivers complex edge AI capability at 15W, which is required for drones, defense systems, robotics, and mobile platforms where competitors simply cannot compete.

“Following our $50 million equity raise, GSI is advancing its roadmap to capture opportunities in edge markets, where our CIM architecture delivers meaningful improvements in power efficiency, latency, and on-device intelligence,” said Lee-Lean Shu, Chairman and Chief Executive Officer of GSI Technology. “At the edge, Gemini-II delivers GPU-class performance at a fraction of the power, enabling real-time responsiveness in power- and size-constrained environments. Its faster time-to-first-token offers a strong advantage in drone and defense applications, where milliseconds and mission endurance matter. Results from our current proof-of-concept engagements reflect this advantage, with customers seeing first-response times up to three times faster than alternative solutions.”

The global edge AI processor market is projected to reach $9.6 billion by 2030, according to third-party research². As AI transitions from broad data center deployments to purpose-built workloads at the edge, a new growth frontier is developing across markets that demand high volumes of compact, power-efficient devices. Leveraging its established relationships with defense agencies and contractors, and the unique advantages of its architecture for AI applications in these domains, GSI is prioritizing early edge AI deployment in the drone and military vehicle markets, where it sees immediate need and demand.

Mr. Shu continued, “Our next-generation APU, Plato, will position GSI to participate in the broader wave of AI deployment, further penetrating embedded edge AI applications. We believe our progress with Gemini-II establishes a strong foundation for long-term growth and shareholder value creation.”

A recent Cornell University study confirmed that GSI’s APU architecture achieves GPU-class performance with more than 98% lower energy consumption through its memory-centric design. The research also demonstrated that the APU performs retrieval tasks several times faster than conventional CPUs, reducing total processing time by up to 80%—underscoring its potential to transform power-sensitive AI workloads.

ABOUT GSI TECHNOLOGY

Founded in 1995, GSI Technology, Inc. is a leading provider of semiconductor memory solutions. GSI's resources are focused on bringing new products to market that leverage existing core strengths, including radiation-hardened memory products for extreme environments and Gemini-I and Gemini-II, associative processing units designed to deliver performance advantages for diverse artificial intelligence applications. GSI Technology is headquartered in Sunnyvale, California, and has sales offices in the Americas, Europe, and Asia. For more information, please visit www.gsitechnology.com.

Forward-Looking Statements

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding GSI Technology’s expectations, beliefs, intentions, or strategies regarding the future. All forward-looking statements included in this press release are based upon information available to GSI Technology as of the date hereof, and GSI Technology assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a variety of risks and uncertainties, which could cause actual results to differ materially from those projected. These risks include those associated with the normal quarterly and fiscal year-end closing process. Examples of risks that could affect our current expectations regarding future revenues and gross margins include those associated with fluctuations in GSI Technology’s operating results; GSI Technology’s historical dependence on sales to a limited number of customers and fluctuations in the mix of customers and products in any period; global public health crises that reduce economic activity; the rapidly evolving markets for GSI Technology’s products and uncertainty regarding the development of these markets; delays or unanticipated costs that may be encountered in the development of new products based on our in-place associative computing technology and the establishment of new markets and customer and partner relationships for the sale of such products; intensive competition; the continued availability of government funding opportunities; and delays or unexpected challenges related to the establishment of customer relationships and orders for GSI Technology’s radiation-hardened and tolerant SRAM products. Many of these risks are currently amplified by and will continue to be amplified by, or in the future may be amplified by, economic and geopolitical conditions, such as worldwide inflationary pressures, policy unpredictability, the imposition of tariffs and other trade barriers, military conflicts and a challenging global economic environment. Further information regarding these and other risks relating to GSI Technology’s business is contained in the Company’s filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings.

Source: GSI Technology, Inc.

Contacts:
Investor Relations
Hayden IR
Kim Rogers
541-904-5075
Kim@HaydenIR.com

Media Relations
Finn Partners for GSI Technology
Ricca Silverio
(415) 348-2724
gsi@finnpartners.com

Company
GSI Technology, Inc.
Douglas M. Schirle
Chief Financial Officer
408-331-9802

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¹ Artificial Intelligence in Drones Market by Offering, Technology, Application & Region – Global Forecast to 2030. https://www.marketsandmarkets.com/Market-Reports/artificial-intelligence-drones-market-43722301.html
² Edge AI Processor Market by Type, Device, End Use, and Region: Global Opportunity Analysis and Industry Forecast, 2023–2032. https://www.alliedmarketresearch.com/edge-ai-processor-market-A24972

FAQ

What did GSI Technology announce on Nov 6, 2025 about Gemini-II and the drone market (GSIT)?

GSI said it defined an edge strategy for Gemini-II, targeting drones and defense; it cited a $2.7B drone market projected by 2030 and emphasized 15W power for edge use.

How much capital did GSI Technology raise to advance Gemini-II (GSIT)?

GSI reported a $50 million equity raise to advance its roadmap toward edge markets.

What performance and power claims did GSI make for Gemini-II APU (GSIT)?

The company said Gemini-II delivers GPU-class performance at 15W, customers saw up to 3x faster first-response, and a Cornell study showed >98% lower energy usage.

Which markets is GSI prioritizing for Gemini-II (GSIT) and why?

GSI is prioritizing drones, military vehicles, robotics, and mobile platforms where low power and millisecond latency provide an advantage over conventional GPUs.

Does GSI report commercial contracts for Gemini-II sales (GSIT)?

The announcement references proof-of-concept engagements and customer results but does not disclose signed commercial contracts or revenue figures.