AI Hardware

Imagination Technologies announces new capital investment from Fortress Investment Group

$100 million convertible term loan to support growth of technologies and IP positioned to power innovative solutions across graphics, compute and AI at the edge.

By Priya Khosla August 1, 2024

Source: Imagination

Imagination Technologies announced a new investment by funds managed by affiliates of Fortress Investment Group LLC (“Fortress”). Under the terms of the agreement, Fortress has provided Imagination with a $100 million convertible term loan to support the continued development and growth of technologies and intellectual property (IP) solutions that will help power advances across Graphics, Compute and AI at the edge.

Imagination will use the financing to support its ambitious objectives for growth, which reflect the centrality of Imagination’s innovative solutions to Graphics, Compute and AI at the edge – markets that are expected to grow significantly in the coming years. As the complexity of semiconductor design and associated development costs continue to increase, the semiconductor IP market is expected to become an $11 billion revenue opportunity by 2026, a 15% CAGR since 2020. By 2030, the total artificial intelligence (AI) semiconductor market is expected to grow to more than $1 trillion, a 32% CAGR from 2025.

Ray Bingham, Executive Chair of Imagination Technologies, says:

“We are thrilled that Fortress has chosen to invest in Imagination. This investment comes with a shared commitment to drive Imagination’s innovation in GPU, CPU and AI, and to help us accelerate growth, drive significant advancements, and deliver unparalleled IP value to customers.”

Eran Zur, Head of Intellectual Property at Fortress, says:

“We are deeply familiar with Imagination’s team, the company’s extraordinary track record of innovation, and its world-class patent portfolio. Imagination is exceptionally well-positioned to capture a greater share of the growth in technology, including in AI, given the burgeoning demand for ever-more efficient compute solutions across the global economy. We look forward to bringing Fortress’s expertise in intellectual property, technology and growth investing to help Imagination continue expanding its leadership in the industry, develop new capabilities, and maximize the value of its portfolio.”

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