Napatech Secures Landmark Design Win In Artificial Intelligence

26 Mar 2025 08:00 CET

COPENHAGEN, Denmark – March 26, 2025 – Napatech™ (OSLO: NAPA.OL), a leading
provider of Programmable Network Interface Cards (NICs) used in datacenters,
today announced it has entered into a material agreement for a groundbreaking
high-volume design win with a leading provider of Artificial Intelligence (AI)
computing platforms used for inferencing in datacenters.

AI inferencing is pivotal because it represents the process of applying trained
machine learning models to make predictions, decisions, or draw insights from
data. It's where the magic of AI becomes practical and beneficial in real-world
applications.

Napatech’s solution targets one of the most transformative use cases for
programmable NICs, known as AI infrastructure. AI inferencing is changing the
way data centers are built, including a massive increase in the number of
servers deployed to meet the insatiable demand for new use cases. AI
Infrastructure is the method by which the new servers are connected to scale the
AI inferencing, forming a massive neural network by which the AI inferencing
processors communicate. AI Infrastructure requires a previously unseen
combination of throughput and latency, with programmability to rapidly to adapt
to evolving technology standards. This solution is repeatable for an entire
emerging industry of AI ASIC vendors who are building optimized solutions for an
indescribable number of new use-cases for AI.

The agreement includes a number of material terms, including: financial
commitments to fund development of new software requirements for their specific
use case; committed unit purchases for their development in 2025 through early
2026; multi-year volume forecast projections; and a five-year minimum product
continuity of supply commitment. The design win should exceed $1.2M in 2025 and
begin its initial ramp during 2026, with the potential to exceed $15M per year
once in peak production.

“The way AI compute nodes are connected will have profound implications on
efficiency, cost, and performance,” said Lars Boilesen, Chief Executive at
Napatech. “At a time when datacenter capex is exploding, Napatech is excited to
be in the eye of the storm.” He continued, “Our Programmable NICs are proving to
be an ideal solution in this space. The design win is a validation of our
strategy to invest in the top use cases that allow our proven products to
transition into the highest-growth areas for Programmable NICs.”

Napatech’s solution is powered by its new N3070X programmable NIC, packed with
the latest technology from Intel-Altera. Disclosed in April 2024 and specified
along with Intel-Altera and a tier-1 global server manufacture, the product is
available today in early access and is under evaluation by lead users.
Napatech’s programmable NICs are purpose-built to improve the performance of
leading datacenter applications including AI infrastructure, cyber security,
financial services, cloud services, big data analytic, and 5G infrastructure.

About Napatech
Napatech is the leading supplier of programmable NICs, including SmartNICs and
IPUs, used in cloud, enterprise, and telecom data centers. Through
commercial-grade software suites integrated with high-performance hardware,
Napatech accelerates network infrastructure, security, and storage workloads to
deliver best-in-class system-level performance while maximizing the availability
of server compute resources for applications, services, and revenue. Additional
information is available at www.napatech.com.

No Forward-Looking Statements
This press release may contain forward-looking statements which are only
predictions and may differ materially from actual future events or results due
to a variety of factors, including but not limited to, business conditions,
trends in the industry and markets, global economic and geopolitical conditions,
macro-economic factors, and other risks and uncertainties set forth in
Napatech’s reports. The matter discussed in this release is based on current
expectations and is subject to change. Napatech will not necessarily update this
information. For details, visit us at www.napatech.com.

Investor Relations
Heine Thorsgaard
Chief Financial Officer
Napatech
htg@napatech.com
+45 4596 1500

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