Microchip to Acquire Hailo

2 August, 2026

Hailo will expand Microchip’s portfolio and strengthen its ability to deliver edge AI solutions for drones, robots, smart cameras, industrial automation and embedded AI systems

photo above: Raspberry Pi 5 whith Hailo AI Accelerator

Microchip Technology has signed a definitive agreement to acquire Hailo, a Tel-aviv based provider of accelerated edge AI processors and comprehensive AI software flows. The transaction is expected to close towards the end of the current quarter ending September 30. The terms of the transaction are not being disclosed. The proposed acquisition is expected to expand Microchip’s portfolio for intelligent edge systems and strengthen its ability to deliver edge AI solutions for intelligent edge applications, including drones, robots, smart cameras, industrial automation and embedded AI systems.

With Hailo-8, Hailo-10 and Hailo-15 processors, Microchip will gain a portfolio that supports classic computer vision, while adding advanced camera, ISP, DSP, video encoding and AI video stream processing capabilities for intelligent edge systems. The Hailo acquisition brings multiple products, more than 100 current customers and an established developer community of more than 10,000 users. Its portfolio spans both edge AI accelerators and vision SoCs supporting workloads and capabilities including CNNs, transformers, LLM/VLM workloads, Image Signal Processing, DSP, H.264/H.265 encoding and AI video stream processing.

The transaction would also bring a demand-generation engine for edge AI adoption. Hailo’s Raspberry Pi ecosystem, gated Developer Zone, GitHub activity and community forum create a self-sustaining funnel that converts developer engagement into qualified opportunities and customer pipeline. “Microchip’s customer reach, channel scale and broad technology portfolio would create a strong platform for bringing advanced vision processing and AI acceleration to broader range of intelligent edge applications,” said Hailo CEO Orr Danon.

A Unicorn That Lost Its Shine

Hailo was founded in 2017 by veterans of IDF elite Military Intelligence technology unit. The company was established around a fundamentally new computing architecture designed specifically for deep learning workloads, enabling real-time AI tasks such as object detection while significantly reducing power consumption, chip size, and cost. Since its inception, Hailo has raised approximately $340 million in funding.

In its latest financing round, completed in April 2024, the company secured $120 million. According to a Reuters report, the round valued Hailo at approximately $1.2 billion, earning it “unicorn” status. At its peak, Hailo employed around 250 people. In early June 2026, Hailo announced the layoff of approximately 110 employees – nearly half of its workforce – as part of a broad restructuring initiative aimed for “aligning the organization’s structure with the next phase of its growth.”

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Posted in tags: Hailo , MicroChip