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

Rhea-AI Summary

GSI Technology (Nasdaq: GSIT) outlined an edge-first strategy for its Gemini-II Associative Processing Unit (APU), targeting the drone market projected at $2.7 billion by 2030. Gemini-II is presented as a low-power edge AI processor delivering GPU-class performance at 15W, faster time-to-first-token and real-time responsiveness for drones, defense, robotics and mobile platforms. The company cited a $50 million equity raise to advance its roadmap and noted a Cornell study showing the APU achieves more than 98% lower energy consumption and up to 80% reduction in processing time for retrieval tasks versus conventional CPUs.

GSI plans early deployments in drone and military vehicle markets while noting data center markets are saturated with large incumbents consuming ~2kW per GPU.

Positive

• Completed $50 million equity raise to advance roadmap
• Gemini-II delivers GPU-class performance at 15W
• Cornell study: >98% lower energy consumption for APU
• Cornell study: processing time reduced by up to 80%
• Proof-of-concept customers saw first-response times up to 3x faster

Negative

• Data center market characterized as saturated with incumbents using ~2kW per GPU

Insights

Edge AI strategist

GSI positions Gemini-II to win low‑power, real‑time edge AI use cases, starting with drones and defense.

GSI links its Gemini-II APU architecture to a clear commercial mechanism: deliver GPU-class inference at dramatically lower power to edge platforms that cannot run 2kW GPUs. The company cites concrete performance claims: operation at $50,000,000 was raised to advance the roadmap, device power of 15W for Gemini‑II, and market size targets of $2.7 billion for the drone segment by 2030 and $9.6 billion for edge AI processors by 2030. These facts show a focused go-to-market approach that pairs a technical claim (low power, faster time-to-first-token) with addressable market figures.

Key dependencies and risks are explicit: validation through proof-of-concept engagements and adoption by defense contractors. The release reports customers seeing "first-response times up to three times faster" and cites a Cornell study claiming "more than 98% lower energy consumption" and up to 80 reduction in total processing time for retrieval tasks; those are material claims that require independent validation during integration and qualification. Watch near-term milestones: published proof‑of‑concept results and any announced procurement or design‑win timelines in 2026–2027 (typical embed cycles).

Defense and robotics market specialist

Targeting drones and military vehicles leverages relationships but depends on formal contracts and systems integration.

GSI emphasises existing relationships with defense agencies and contractors and frames Gemini‑II as suitable for drones, defense systems, robotics, and mobile platforms because of its 15W power envelope and claimed latency advantages. The business pathway is trial → integration → procurement; the announcement presents proof‑of‑concept performance and a fundraising event ($50,000,000) to fund that progression. Those factual pillars support a credible entry strategy into defense and robotics segments.

Risks derive from procurement cycles and integration hurdles; the company notes data‑center incumbents but does not provide contract wins or certification milestones. Concrete items to monitor are formal defense contracts or development agreements, published integration test results, and any timing on the next-generation APU "Plato" roadmapped in the release—each will materially affect near-term adoption within 2026–2028.

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-A16569

FAQ

What edge markets is GSI Technology (GSIT) targeting with Gemini-II on Nov 6, 2025?

GSI is prioritizing drones and military vehicle markets for early edge AI deployment.

How much power does the Gemini-II APU consume compared to data center GPUs?

Gemini-II is reported to run at 15W, versus data center GPUs that approach 2kW.

What financing did GSI (GSIT) complete to advance Gemini-II?

GSI completed a $50 million equity raise to advance its roadmap for edge APUs.

What did the Cornell study conclude about GSI's APU energy and speed on Nov 6, 2025?

The study found the APU achieves more than 98% lower energy consumption and up to 80% faster processing time for retrieval tasks versus conventional CPUs.

What commercial advantage does GSI claim for Gemini-II in drone applications?

GSI says Gemini-II offers faster time-to-first-token and real-time responsiveness, with customers seeing up to 3x faster first-response times in proofs of concept.

What is the size of the drone market GSI cited for its edge strategy?

GSI cited a drone market projected at $2.7 billion by 2030 as an initial target segment.